London session: the NZD/USD pair faces barriers at 0.6090, the US Dollar Index tries to comeback at 102.30, Kiwi asset fails to test 0.6100, and the USD Index may retake the immediate barrier at 102.80 amid encouraging economic figures.


The London session saw S&P500 futures advance, likely due to US stocks recouping from Tuesday’s sell-off. Selling pressure on US indexes arose due to the rise in oil prices, which caused inflation and household stress.

The US Dollar Index is expected to benefit from a cautious market ahead of the Consumer Price Index data. Market players anticipate sticky inflation due to rising oil prices and continued wage growth, indicating resilient consumer spending.

The Federal Reserve’s neutral interest rate guidance has not sustained the risk-aversion theme for a long time. Philadelphia Fed Bank president Patrick Harker believes the central bank can be patient, maintain constant rates, and allow monetary policy activities to take effect.

Chinese economy is beginning to see the rebound in inflationary pressures diminish, with monthly CPI increasing at 0.2% in July, contrary to expectations of 0.1% deflation. PPI deflation continued at a faster rate of 4.4%, compared to 4.1% predictions.
Chinese manufacturers struggle to increase prices due to weak demand and declining exports, despite increased monetary and fiscal assistance from the PBC and government.


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