What’s behind the US economy’s resilience? ========== The US economy has shown extraordinary resilience, outperforming other advanced economies despite high interest rates. Several factors contribute to this strength, including heavy public spending, immigration flows, fixed-rate mortgages, and energy independence. However, the US dollar has not experienced a significant rally due to developments in other financial markets and the collapse in natural gas prices. Looking ahead, the US economy's resilience may lead to persistently high inflationary pressures, potentially delaying rate cuts by the Federal Reserve. A full-blown rally of the US dollar may require a period of risk aversion in the markets and a correction in equity valuations. Foreign central bank rate cuts could also impact the dollar's performance. #UsEconomy #Resilience #PublicSpending #Immigration #Mortgages #EnergyIndependence #UsDollar #FinancialMarkets #Inflation #FederalReserve #RiskAversion #EquityValuations #ForeignCentralBanks https://www.fxstreet.com/analysis/whats-behind-the-us-economys-resilience-202404110901

Markets trim Fed rate cut expectations amid high US CPI ========== Markets have reduced their expectations for a rate cut by the Federal Reserve due to high US CPI. The US March CPI print surprised to the upside with a 0.4% m/m increase in both headline and core inflation. The market reaction was strong, with expectations of rate cuts for the year being scaled back to 2. The 10-year yield gained 18bp and the US dollar gained 1% against most G-10 currencies. Asian equity markets tumbled following the CPI print, with the Nikkei down 0.8% and the MSCI index for Asia-Pacific losing 0.7%. The ECB is expected to confirm its current narrative and deliver a rate cut in June. In Sweden, inflation expectations are expected to be confirmed at around 2.0% on all horizons. The US PPI data and Fedspeak are also awaited. #Fed #RateCut #UsCpi #Ecb #Inflation #MarketReaction #Yield #UsDollar #EquityMarkets #Nikkei #MsciIndex #Sweden #InflationExpectations #Ppi #Fedspeak https://www.fxstreet.com/analysis/markets-trim-fed-rate-cut-expectations-amid-high-us-cpi-202404110605

US inflation report could temper June cut expectations ========== European markets have started the day on a solid footing, with rebounding throughout the region despite potential US-focused ahead of today's inflation data and FOMC minutes. The RBNZ decision to keep rates steady came as no surprise, and their steadfast approach to driving down inflation stands them in stark contrast to those banks signalling potential action in the coming months. US inflation looks to provide a significant hurdle for markets today, with expectations of an uptick in headline CPI signalling the growing likeliness that we will see the Fed push back against expectations of a June rate cut. Between a strong US economy, strong jobs, and elevated inflation rate, there is little surprise that we are seeing markets gradually temper their expectations for a June rate cut from the Fed. #UsInflation #JuneRateCut #EuropeanMarkets #Rbnz #Fomc #Fed https://www.fxstreet.com/analysis/us-inflation-report-could-temper-june-cut-expectations-202404100957

Pound Sterling stays on sidelines ahead of US inflation data ========== The Pound Sterling remains uncertain ahead of the United States Consumer Price Index (CPI) data for March, which will be published at 12:30 GMT. Economists expect US inflation to remain relatively high in March due to increasing gas prices, insurance costs, and rentals. Hot price pressures would shift market expectations of Federal Reserve (Fed) rate cuts to the third quarter of this year. On the domestic front, the Pound Sterling will be guided by the United Kingdom's monthly Gross Domestic Product (GDP) and factory data for February, which will be published on Friday. The rising cost-of-living crisis in the UK supports Bank of England (BoE) rate cut prospects. The Pound Sterling faces resistance near 1.2700 and struggles to extend upside. The US Dollar Index (DXY) rebounds to 104.15 ahead of the US inflation data. The rising burden of higher cost of living on UK households prompts demand for rate cuts by the BoE. Investors expect the BoE to pivot to rate cuts after the June meeting. The Pound Sterling (GBP) is the oldest currency in the world and the official currency of the United Kingdom. The decisions of the Bank of England impact the value of the Pound Sterling, as it adjusts interest rates based on achieving price stability. Economic data releases, such as GDP, Manufacturing and Services PMIs, and employment, can influence the direction of the GBP. The Trade Balance is also a significant data release for the Pound Sterling, as a positive net Trade Balance strengthens the currency. The Pound Sterling trades modestly flat below 1.2700 and awaits the US CPI data. Gold price trades in positive territory around $2,355 as investors await the US CPI data. Ripple (XRP) price tests a crucial support at $0.60. The US Consumer Price Index is set to rise 3.4% YoY in March, following the 3.2% increase in February. Annual core CPI inflation is expected to edge lower to 3.7% YoY in March. #PoundSterling #UsInflationData #BankOfEngland #GrossDomesticProduct #FederalReserve https://www.fxstreet.com/news/pound-sterling-remains-on-tenterhooks-ahead-of-us-inflation-data-202404100755

BRICS is intent on de-dollarization but its chances of success are slim ========== BRICS wants to de-dollarize the world economy to curb the US’s power and influence. The chances of it succeeding in replacing the US Dollar are low. The US Dollar would depreciate rapidly should BRICS be successful. One of the main goals of the BRICS nations is to de-dollarize the world economy. BRICS want to topple the US Dollar’s (USD) monopoly on world trade. About 90% of global transactions involve US Dollars and 50% of all global trade is Dollar-denominated. BRICS countries' motives are not purely rooted in anti-American feeling. Reducing reliance on the US Dollar is also a form of “financial” risk management, according to Ray Dalio, CEO of Bridgewater Associates. BRICS nations want to de-dollarize, or reduce exposure to US Dollar debt in the form of US Treasury bonds, to avoid exposure to the risk of US sanctions. The effectiveness of US sanctions is dependent on the widespread use of the US Dollar. BRICS current long-term strategy is to replace the US Dollar with “R5” or the five R’s, which stand for the currencies of the founding BRICS countries – the Real, Ruble, Rupee, Renminbi and Rand. BRICS have already had some success in this endeavor. Whilst a growing amount of international trade amongst BRICS countries is now being conducted in the R5 currencies, the chances of actually replacing the US Dollar are very low, according to experts. The universal appeal and liquidity of the US Dollar is hard to replace and it is these qualities which ensure its continued use as a medium of trade between different countries. One key threat to the dominance of the US Dollar lies in the growth and popularity of the BRICS as a trade association. If the group keeps growing it could eclipse the Dollar through sheer weight of membership. Another threat to the US Dollar comes from an analysis of long-term historical cycles. A study of these cycles leads to the conclusion that the Dollar’s days as the world’s reserve currency are inevitably numbered, according to Ray Dalio. If BRICS were successful in replacing the US Dollar, USD would depreciate substantially according to many currency analysts. #Brics #Dedollarization #UsDollar #Currency #Trade #Sanctions https://www.fxstreet.com/analysis/brics-is-intent-on-de-dollarization-but-its-chances-of-success-are-slim-202404091602

BRICS is intent on de-dollarization but its chances of success are slim ========== BRICS wants to de-dollarize the world economy to curb the US’s power and influence. The chances of it succeeding in replacing the US Dollar are low. The US Dollar would depreciate rapidly should BRICS be successful. One of the main goals of the BRICS nations is to de-dollarize the world economy. BRICS want to topple the US Dollar’s (USD) monopoly on world trade. About 90% of global transactions involve US Dollars and 50% of all global trade is Dollar-denominated. BRICS countries' motives are not purely rooted in anti-American feeling. Reducing reliance on the US Dollar is also a form of “financial” risk management, according to Ray Dalio, CEO of Bridgewater Associates. BRICS nations want to de-dollarize, or reduce exposure to US Dollar debt in the form of US Treasury bonds, to avoid exposure to the risk of US sanctions. The effectiveness of US sanctions is dependent on the widespread use of the US Dollar. BRICS current long-term strategy is to replace the US Dollar with “R5” or the five R’s, which stand for the currencies of the founding BRICS countries – the Real, Ruble, Rupee, Renminbi and Rand. BRICS have already had some success in this endeavor. Whilst a growing amount of international trade amongst BRICS countries is now being conducted in the R5 currencies, the chances of actually replacing the US Dollar are very low, according to experts. The universal appeal and liquidity of the US Dollar is hard to replace and it is these qualities which ensure its continued use as a medium of trade between different countries. One key threat to the dominance of the US Dollar lies in the growth and popularity of the BRICS as a trade association. If the group keeps growing it could eclipse the Dollar through sheer weight of membership. Another threat to the US Dollar comes from an analysis of long-term historical cycles. A study of these cycles leads to the conclusion that the Dollar’s days as the world’s reserve currency are inevitably numbered, according to Ray Dalio. If BRICS were successful in replacing the US Dollar, USD would depreciate substantially according to many currency analysts. #Brics #Dedollarization #UsDollar #Currency #Trade #Sanctions https://www.fxstreet.com/analysis/brics-is-intent-on-de-dollarization-but-its-chances-of-success-are-slim-202404091602

Markets looking to US CPI and FOMC Minutes Wed night – RBNZ rate decision tomorrow ========== Asian markets were quiet with little movement in FX and bonds. Taiwan Semi's new US subsidies helped Taiwan's Taiex to fresh record highs. Australian monthly consumer confidence extends its slump to 2 years. NZ businesses are more pessimistic about the economy based on their own trading against a range of economic headwinds. South Korea joins the international chip wars with multi-billion dollar incentives to attract chip-makers. US equity futures were up during the Asian session. The RBNZ rate decision is expected tomorrow. Holidays in Asia this week: Indonesia, Malaysia, Philippines, Singapore, India. #UsCpi #FomcMinutes #RbnzRateDecision #AsianMarkets #TaiwanSemi #Taiex #AustralianConsumerConfidence #NzBusinessConfidence #SouthKoreaChipIncentives #UsEquityFutures #Rbnz https://www.fxstreet.com/analysis/markets-looking-to-us-cpi-and-fomc-minutes-wed-night-rbnz-rate-decision-tomorrow-202404090549

USD/CHF hovers around 0.9050, US CPI data looms ========== The USD/CHF pair is trading around 0.9050 during the early European session. The weaker US Dollar (USD) is contributing to the downtick of the pair. However, the upbeat US March employment report and hawkish comments from Federal Reserve (Fed) officials may limit the downside of the USD/CHF pair. The US employment report showed that the economy added more jobs than expected, leading to speculation that the Fed might delay the easing cycle. The odds of a June rate cut declined to below 50%. Fed Chair Jerome Powell stated that the central bank could cut rates if the US economy continues on its current course. Fed Governor Michelle Bowman mentioned that the Fed might need to act further to ease price pressures. Minneapolis Fed President Neel Kashkari penciled in two interest rate cuts this year, but if inflation continues to stall, no rate cuts would be a possible scenario. Investors are awaiting the US Consumer Price Index (CPI) data for March, which could impact expectations for Fed rate cuts. On the Swiss front, the escalating tensions in the Middle East could boost safe-haven assets like the Swiss Franc (CHF) and create a headwind for the USD/CHF pair. #Usd/chf #UsCpi #FederalReserve #EmploymentReport #InterestRateCuts #Inflation #SwissFranc #MiddleEastTensions https://www.fxstreet.com/news/usd-chf-hovers-around-09050-us-cpi-data-looms-202404090509

USD/CHF hovers around 0.9050, US CPI data looms ========== The USD/CHF pair is trading around 0.9050 during the early European session. The weaker US Dollar (USD) is contributing to the downtick of the pair. However, the upbeat US March employment report and hawkish comments from Federal Reserve (Fed) officials may limit the downside of the USD/CHF pair. The US employment report showed that the economy added more jobs than expected, leading to speculation that the Fed might delay the easing cycle. The odds of a June rate cut declined to below 50%. Fed Chair Jerome Powell stated that the central bank could cut rates if the US economy continues on its current course. Fed Governor Michelle Bowman mentioned that the Fed might need to act further to ease price pressures. Minneapolis Fed President Neel Kashkari penciled in two interest rate cuts this year, but if inflation continues to stall, no rate cuts would be a possible scenario. Investors are awaiting the US Consumer Price Index (CPI) data for March, which could impact expectations for Fed rate cuts. On the Swiss front, the escalating tensions in the Middle East could boost safe-haven assets like the Swiss Franc (CHF) and create a headwind for the USD/CHF pair. #Usd/chf #UsCpi #FederalReserve #EmploymentReport #InterestRateCuts #Inflation #SwissFranc #MiddleEastTensions https://www.fxstreet.com/news/usd-chf-hovers-around-09050-us-cpi-data-looms-202404090509

WTI gains momentum above $86.00 amid ongoing Middle East geopolitical tensions, weaker US Dollar ========== WTI prices gain momentum near $86.00 on Tuesday. The ongoing Middle East tensions, a key region for oil production, might boost WTI prices. The expectation that the Fed might delay interest rate cuts this year drags black gold lower. Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $86.25 on Tuesday. The weaker US Dollar (USD) and the ongoing geopolitical tensions in the Middle East conflict raise concern about the crude supply disruption, boosting WTI prices near the six-month top. On the weekend, Israel withdrew its forces from Khan Younis in southern Gaza, resulting in one of the lowest military levels since the conflict with Hamas started in October. WTI prices trimmed gains following this headline. However, the uncertainty surrounding Iran's reaction after the attack on its consulate in Syria last week might cap the downside of the black gold. A top Iranian military advisor warned Israel over the weekend that its embassies could be targeted, fueling concern that the Middle East conflict could broaden. Additionally, the strikes on Russian refineries have also raised the geopolitical risk premium. The International Energy Agency's (IEA) forecast for 2024 oil demand has risen as traders shift from bearishness to optimism, bolstered by recent improved manufacturing surveys in China, the United States, and India. On the other hand, the US labor market report on Friday came in better than the market estimation, indicating the US economy ended the first quarter on solid ground. This report could prompt the Federal Reserve (Fed) to delay interest rate cuts this year, which might drag WTI prices lower. Oil traders will monitor the API Weekly Crude Oil Stock on Tuesday. Later this week, the US and Chinese March Consumer Price Index (CPI) reports will be due on Wednesday and Thursday, respectively. These events could offer some hints about the economic health of the world's top two oil consumers. #Wti #OilPrices #MiddleEastTensions #UsDollar #GeopoliticalRisk #OilDemand #InterestRateCuts #ApiWeeklyCrudeOilStock #ConsumerPriceIndex https://www.fxstreet.com/news/wti-gains-momentum-above-8600-amid-ongoing-middle-east-geopolitical-tensions-weaker-us-dollar-202404090056

AUD/USD hovers near 0.6600 as markets await Aussie’s Business, Consumer Confidence data ========== The Australian Dollar (AUD) rose 0.42% against the US Dollar (USD) due to better sentiment and a dip in the USD. US inflation remains steady, and the positive economic outlook from the Federal Reserve influences currencies. Traders are awaiting the latest inflation report in the US and Australian consumer confidence data. The AUD/USD pair trades at 0.6604, virtually flat. Technical analysis suggests that if the pair surpasses the April 4 high of 0.6619, the next stop would be intermediate resistance at 0.634, followed by the March 21 high at 0.6667. The first support for AUD/USD would be the 100-day moving average at 0.6600. #Aud/usd #AustralianDollar #UsDollar #BusinessConfidence #ConsumerConfidence #Inflation https://www.fxstreet.com/news/aud-usd-hovers-near-06600-as-markets-await-aussies-business-consumer-confidence-data-202404082309

US Dollar trades in red as traders await CPI data outcome ========== The US Dollar (USD) is currently trading at a modest loss at the 104.15 level. The Federal Reserve's (Fed) cautious stance is calibrated in light of incoming data. The US economy has yet to show clear evidence of a moderation of inflation and economic activity, which makes the Fed comfortable to start cutting. Markets are still pricing in higher odds of around 60% of the easing cycle to start in June. On Wednesday, the US will release Consumer Price Index (CPI) data from March, a crucial inflation indicator. The headline figure is seen accelerating, while the core measure is seen cooling down. The outcome of the index will likely fuel volatility in the USD dynamic via movements in Treasury yields and Fed expectations. #UsDollar #CpiData #FederalReserve https://www.fxstreet.com/news/us-dollar-trades-in-red-as-traders-await-cpi-data-outcome-202404081651

Natural Gas turns in the green with Spain gas prices showing issues for Europe ========== Natural Gas prices are consolidating on Monday in both US and European trading. Traders are picking up Gas contracts with gas prices in Spain pointing to shortage. Spain has a just-in-time gas network with little storage facilities compared to France or Germany, and is very much dependant from inflows from other countries. The US Dollar Index sees ample support towards 105.00 despite its downbeat performance last week. Natural Gas (XNG/USD) reverses from its earlier thoughts this Monday that a global recession could be showing up. Biggest element for this turnarounc comes out of Spain where local gas prices are trading above the benchmark European prices. Spain has a just-in-time gas network with little storage facilities compared to France or Germany, and is very much dependant from inflows from other countries. Natural Gas is trading at $1.93 per MMBtu at the time of writing. Traders are cutting their Carbon exposure, which could point to a potential recession risk in the energy sector. Energy-consuming companies buy Carbon Emission rights to be able to burn Gas or consume other energy resources for their business. A decline in Carbon buying could mean a slowdown ahead in industrial production. The ban on new US Gas exports from US President Joe Biden is starting to bite on a state level. Pennsylvania governor Josh Shapiro (Democrat) urged Joe Biden to reverse the policy with risk of losing the swing state in the 2024 Presidential Election, according to Bloomberg. Dow Jones reports that TotalEnergies will expand its gas production in Texas after it acquired a 20% stake in Lewis Energy Group, which holds leases to mine Gas in Dorado. Bloomberg reports a drop in Natural Gas supplies with biggest factor being Egypt, which is set to halt gas exports over the summer, to redirect the gas feed inland in order to meet with the energy demand during the need for cooling. Natural Gas prices are facing issues again, with the rising US yields as the biggest threat on the horizon. US soared over 20 basis points in the US 10-year benchmark rate last week, while other major economies are seeing their central banks on the way to cut or have cut already. This rate differential weighs on the US against the rest of the world, and it could mean a slowdown is taking place: Even if the US economy is outperforming, higher rates will start to cut growth and this means less demand for Natural Gas. On the upside, the key $1.97 level needs to be regained before challenging last week’s peak at $2.00. The next key mark is the historic pivotal point at $2.13. Should Gas prices pop up in that region, a broad area opens up with the first cap at the red descending trend line near $2.21. On the downside, multi-year lows at $1.60 are still nearby, with $1.65 as the first line in the sand. In case of a breakdown below these levels, traders should look at $1.53 as the next supportive area. #NaturalGas #Spain #Europe #GasPrices #UsDollar #CarbonEmission #UsGasExports #Totalenergies #Egypt #UsYields https://www.fxstreet.com/news/natural-gas-slips-below-190-on-sluggish-demand-prospects-202404081124

AUD/USD begins the week with extending losses, trades around 0.6560 ========== AUD/USD begins the week with extending losses, trading around 0.6560. The US Dollar strengthens supported by higher US Treasury yields, putting downward pressure on AUD/USD. The US Nonfarm Payrolls report showed an increase of 303,000 jobs in March, surpassing expectations. The market projects a 70% likelihood of a rate cut by the Federal Reserve in June. Higher copper and oil prices could potentially support the Australian Dollar. Australia recorded its smallest Trade Surplus in five months in February. The Reserve Bank of Australia maintained its cash rate at 4.35% for the third consecutive meeting. #Aud/usd #UsDollar #NonfarmPayrolls #AustralianDollar #TradeSurplus https://www.fxstreet.com/news/aud-usd-begins-the-week-with-extending-losses-trades-around-06560-202404080057

NFP Analysis: The US economy is on fire, Gold set to rust, US Dollar to shine until the CPI release ========== The US gained 303,000 jobs in March, exceeding expectations. Wage growth remains robust. Gold will likely struggle, the US Dollar shine, and stocks to wobble. Neel Kashkari's hawkish comments triggered wild market action. The US Dollar advanced and US Treasury yields increased. Stock markets took the news positively. Investors are set to accept that a rate cut in June is drifting further away. The US releases its Consumer Price Index (CPI) report on April 10. EUR/USD breached 1.0800 on the strong Dollar. GBP/USD plummeted below 1.2600. Gold prices receded following the strong NFP report. Bitcoin price action has been confusing. Japanese Yen is jumpy ahead of US Payrolls. Crypto derivatives hit record high trading volume. Altcoins show signs of deepening correction. S&P 500 rallied on unemployment claims above expectations. #UsEconomy #Gold #UsDollar #CpiRelease #Eur/usd #Gbp/usd #Bitcoin #JapaneseYen #S&p500 https://www.fxstreet.com/analysis/nfp-analysis-the-us-economy-is-on-fire-gold-set-to-rust-us-dollar-to-shine-until-the-cpi-release-202404051256

Japanese Yen slides to fresh daily low against against USD, US NFP looms large ========== The Japanese Yen (JPY) drops to a daily low against the USD after rising to a two-week high earlier. The decline is attributed to USD buying supported by hawkish remarks from Federal Reserve officials. However, the risk-off environment and intervention fears limit the JPY's losses. Traders are now awaiting the release of the US jobs data (NFP) for further direction. Speculations of Japanese authorities intervening in the markets and the possibility of a rate hike by the Bank of Japan also contribute to the cautious trading. The USD/JPY pair's pullback from a multi-decade high may not be over yet. #JapaneseYen #Usd #UsNfp #ForexMarket https://www.fxstreet.com/news/japanese-yen-advances-to-over-two-week-high-against-usd-ahead-of-us-nfp-202404050159

US jobs in focus, with unemployment claims setting us up for tomorrow's jobs report ========== European markets are higher as banks and miners lift the FTSE 100. The services sector is in focus, with the UK likely to have exited its recession in Q1. US jobs remain in the limelight, with unemployment claims setting up for tomorrow's jobs report. Yesterday's comments from Jerome Powell highlighted the Fed's view on risks to cutting rates too late or too soon. The services sector prices paid metric declined, helping lift hopes of a June rate cut. Tomorrow's average earnings data will likely provide the most relevant data point to follow. Today's unemployment claims data will likely signal resilience in the US economy. European indices are optimistic about an improved environment for manufacturing and commodities. The article is a marketing communication and does not constitute investment advice. #UsJobs #UnemploymentClaims #ServicesSector #EuropeanMarkets #RateCut #Manufacturing #Commodities https://www.fxstreet.com/analysis/us-jobs-in-focus-with-unemployment-claims-setting-us-up-for-tomorrows-jobs-report-202404040914

WTI stands tall near multi-month peak, just above $85.00/barrel mark ========== WTI US Crude Oil prices are consolidating near a five-month peak just above the $85.00/barrel mark. The Energy Information Administration (EIA) reported an unexpected build in US Crude stockpiles, which is seen as a headwind for oil prices. However, concerns about supply disruptions in the Middle East, tight global supply, and signs of improving demand are supporting prices. The risk of the Israel-Hamas war spreading to include Iran and disrupt supplies in the Middle East is acting as a tailwind. The meeting of top OPEC+ ministers on Wednesday kept oil supply policy unchanged and urged some countries to increase compliance with output cuts. Federal Reserve Chair Jerome Powell expressed caution about future interest rate cuts, but upbeat Chinese manufacturing data and signs of improving demand from the world's largest crude importer are contributing to support oil prices and limit any significant correction. #Wti #UsCrudeOil #OilPrices #SupplyDisruptions #GlobalSupply #Demand #Opec+ #JeromePowell #China https://www.fxstreet.com/news/wti-stands-tall-near-multi-month-peak-just-above-8500-barrel-mark-202404040241

Gold stands tall near record high as US PCE data reaffirms June Fed rate cut bets ========== Gold price (XAU/USD) enters a bullish consolidation phase during the early European session and oscillates in a narrow band around the $2,260-$2,265 region, or a fresh record high touched this Monday. Investors now seem convinced that the Federal Reserve (Fed) will start cutting in June and the bets were reaffirmed by the US Personal Consumption Expenditures (PCE) on Friday. This, along with geopolitical risks stemming from the protracted Russia-Ukraine war and the recent conflicts in the Middle East, lend additional support to the safe-haven precious metal. Data released on Sunday showed that China's manufacturing activity expanded for the first time in six months in March and boosted investors' confidence. The risk-on mood and a modest USD uptick do little to hinder the strong move up. The overbought RSI on the daily chart warrants some caution for aggressive bulls. #GoldPrice #Xau/usd #FederalReserve #JuneRateCut #UsPceData #GeopoliticalRisks #ChinaManufacturingActivity https://www.fxstreet.com/news/gold-price-climbs-further-beyond-2-250-fresh-all-time-high-amid-june-fed-rate-cut-bets-202404010441

NZD/USD stretches higher to near 0.5980 on dovish comments from Fed’s Powell, US ISM PMI eyed ========== The NZD/USD pair extends its gains to near 0.5980 as the Federal Reserve (Fed) Chairman Jerome Powell makes dovish comments, confirming the Fed's position on potential interest rate cuts for the year. The New Zealand Dollar (NZD) faces downward pressure amid speculation that the Reserve Bank of New Zealand (RBNZ) may commence policy rate cuts starting from early next year. The Kiwi Dollar (NZD) is also boosted by positive Chinese Purchasing Managers Index (PMI) figures, indicating an expansion in Chinese manufacturing activity. Traders are cautious ahead of the release of the US ISM Manufacturing Purchasing Managers Index (PMI) data. The NZD/USD pair is currently trading near 0.5980. #Nzd/usd #FederalReserve #InterestRateCuts #ReserveBankOfNewZealand #ChinesePurchasingManagersIndex https://www.fxstreet.com/news/nzd-stretches-higher-to-near-05980-on-dovish-comments-from-feds-powell-us-ism-pmi-eyed-202404010445