The NZD/USD pair experienced a modest increase, reaching approximately 0.5935 during the early Asian trading session on Thursday. This movement follows the release of New Zealand’s Q1 CPI data, which indicated a year-over-year increase of 2.5%, exceeding both the previous quarter’s 2.2% and market expectations of 2.3%. The quarterly CPI also rose to 0.9%, surpassing the prior 0.5% and consensus forecasts of 0.7%. While these inflation figures marginally exceeded the Reserve Bank of New Zealand’s (RBNZ) February projections, analysts anticipate that this will not impede future reductions to the Official Cash Rate (OCR). Market participants continue to anticipate potential interest rate cuts by the Federal Reserve, potentially commencing in June. Investors are also awaiting the release of US Building Permits, Housing Starts, the Philly Fed Manufacturing Index, and Initial Jobless Claims data later in the day.
