NZD/USD Rises Above 0.6100 as Fed Rate Cut Speculation Builds

NZD/USD Rises Above 0.6100 as Fed Rate Cut Speculation Builds

The NZD/USD currency pair climbed near 0.6105 in early European trading on Wednesday, continuing its bullish momentum amid rising expectations that the Federal Reserve may cut interest rates soon—possibly as early as this month.

Powell’s Comments Fuel Market Optimism

Federal Reserve Chairman Jerome Powell signaled openness to easing monetary policy in a statement on Tuesday, though he noted that the central bank would remain data-dependent. His comments fueled increased speculation, with futures markets now pricing in a 25% probability of a July rate cut, up from 20% before his speech.

US Economic Data & ADP in Focus

Recent U.S. data also influenced the market mood. Job openings surged by 374,000 to 7.769 million in May, exceeding expectations and showing resilience in the labor market. Traders are now eyeing the ADP Employment Change for June, due later today, for further clues about Fed policy direction.

Positive Chinese PMI Lifts NZD

The Kiwi Dollar also received support from strong Chinese economic data, with the Caixin Manufacturing PMI rising to 50.4 in June, up from 48.3 in May and beating the 49.0 forecast. As China is a key trading partner for New Zealand, robust Chinese growth tends to benefit the NZD.

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