NZD/USD retests three-month lows below 0.6150 as US consumer spending bolsters hawkish Fed wagers

During the Asian trading session, the NZD/USD retested its three-month trough below 0.6148. The kiwi asset has been dumped by market participants amid weak New Zealand Retail Sales data and increasing stakes for the Federal Reserve's policy tightening to continue (Fed).

The term "ecosystem" refers to a group of people who work in the construction industry. S&P500 futures have shown some recovery on Monday morning after reporting significant losses last week, reflecting a caution in the overall theme of risk aversion. The likelihood that the Federal Reserve will announce additional rate hikes to combat persistent inflation has increased, which has had a detrimental effect on U.S. stocks.

The demand for U.S. government bonds has decreased due to the Federal Reserve's increased support for additional policy restrictions. The 10-year US Treasury yield has risen above 3.94% as a result of a decline in bond demand.

Despite the dovish People's Bank of China (PBOC) report, the New Zealand Dollar has struggled to gain ground. The report predicts a revival in the Chinese economy in 2023 as a result of a relaxation in epidemic prevention and an increase in consumption. The PBoC's vision extends beyond the expansion of domestic demand to include economic growth and price stability over the extended term.

Notably, New Zealand is one of China's primary trading partners, and an expansionary monetary policy from the People's Bank of China will strengthen the New Zealand Dollar.