NZD/USD is expected to witness a downside after the conclusion of the short-lived pullback to near 0.6170.
A significant decline in NZ inflation indicates that the RBNZ is well on track of arresting sticky inflation.is hovering above 0.6170 in the early Asian session after a less-confident recovery move from 0.6150. The Kiwi asset is expected to resume its downside journey below 0.6150 as Federal Reserve policymakers are supporting more conservative monetary policy from the central bank despite easing United States labor market conditions.
Meanwhile, Fed policymakers are still confident of one more rate hike ahead. St. Louis Fed President James Bullard advocated for the continuation of a policy-tightening spell by the central bank considering the fact that labor market data is still solid, as reported by Reuters. Fed policymaker further added that demand for labor has not softened yet and a strong labor market leads to strong consumption.