Due to concern about the US inflation figures, the NZD/USD pair is falling apart like a pile of cards. The asset has gone below 0.6400 due to the expectation that the Federal Reserve would raise interest rates twice in a row because of rising inflation.

In addition, a 75 basis point increase in interest rates is projected from the Fed in June. A 75-bp rate hike is not in the cards, according to Jerome Powell, the head of the US Federal Reserve. The Fed’s only choice is to hike interest rates, so it’s not surprising.

On Friday, May 6, 2022, the United States Bureau of Labor Statistics (BLS) released nonfarm payroll data. US nonfarm payrolls remained at 428,000 in April, according to Fxstreet.com, unchanged from March’s figure.

The nonfarm payroll numbers show the amount of non-agricultural jobs created in the United States. Changes in the payroll figure directly impact the Federal Reserve’s decisions.

According to the Bank of New Zealand (BNZ), New Zealand’s economic growth will halt in 2023. It looks that higher inflation is now making an appearance. The Bank of New Zealand (BNZ) has stated that the likelihood of a Kiwi recession is increasing. Antipodean demand may fall even lower as a result.

Conclusion

The bulls have breached a critical support level, allowing them to join the New Zealand/US dollar pair. The daily period shows the au-delà of the daily period. Short-term trading chances will arise in the absence of substantial economic changes.