NZD/USD falls below 0.5900 as NZ inflation disappoints and Fed uncertainty persists
- **NZ inflation data**:
- Headline CPI rose to **1.8%** in Q3, lower than expected.
- Yearly rate slowed to **5.6%** from 6%, missing forecasts.
- Investors reduce bets for RBNZ rate hike in November.
- **USD dynamics**:
- USD remains weak as Fed officials signal no rate hike in November.
- US consumer inflation data keeps the door open for one more rate hike by year-end.
- US Treasury bond yields support USD and pressure NZD/USD.
- **Market outlook**:
- NZD/USD needs to break below 0.5900 to confirm bearish bias.
- US Retail Sales and Industrial Production data might provide some direction.
- Risk sentiment and US bond yields also in focus.
- **NZ inflation data**:
- Headline CPI rose to **1.8%** in Q3, lower than expected.
- Yearly rate slowed to **5.6%** from 6%, missing forecasts.
- Investors reduce bets for RBNZ rate hike in November.
- **USD dynamics**:
- USD remains weak as Fed officials signal no rate hike in November.
- US consumer inflation data keeps the door open for one more rate hike by year-end.
- US Treasury bond yields support USD and pressure NZD/USD.
- **Market outlook**:
- NZD/USD needs to break below 0.5900 to confirm bearish bias.
- US Retail Sales and Industrial Production data might provide some direction.
- Risk sentiment and US bond yields also in focus.