NZD/USD remains capped under the 0.6300 mark, US PCE data looms
- NZD/USD currently trades near 0.6294 ahead of US key data.
- US GDP Q3 shows the US economy expanded by 4.9%, lower than the expected 5.2%.
- RBNZ’s Orr said that the surprisingly weak third-quarter GDP data was a complex situation.
- November's US Core PCE will be closely watched by traders on Friday.
The NZD/USD pair remains capped under the 0.6300 psychological mark during the early Asian session on Friday. However, the further upside of the pair looks favorable due to the dovish stance of the Federal Reserve (Fed) and the weaker US dollar (USD). At press time, NZD/USD is trading at 0.6294, up 0.03% for the day.
The US Labor Department revealed on Thursday that the weekly Initial Jobless Claims last week increased by 2K to 205K, below the market consensus of 215K. Additionally, the US Bureau of Economic Analysis (BEA) reported that the US GDP Q3 shows the US economy expanded by 4.9%, lower than the expected 5.2%. The weaker-than-expected GDP growth number dragged to Greenback lower across the board and created a tailwind for the NZD/USD pair.
The Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said on Wednesday that surprisingly weak third-quarter Gross Domestic Product (GDP) data was a "complex situation," but there will be other data to be released before the next cash rate decision in February.
Statistics New Zealand revealed last week that the Q3 New Zealand GDP growth number contracted by 0.3% from 0.5% growth in the previous reading, worse than the market expectation of a 0.2% expansion. Additionally, the annual Q3 GDP arrived at -0.6%, compared with the 1.5% growth in Q2 while missing estimates of a 0.5% increase.
The November’s US Core Personal Consumption Expenditure Price Index (Core PCE), the Fed’s preferred inflation gauge, will be due on Friday. Also, the University of Michigan Consumer Confidence Survey, Durable Goods Orders report and New Home Sales data will also be released later in the day. These figures could give a clear direction to the NZD/USD pair.