3/1/2021 11:01:08 AM GMT | By Eren Sengezer
NZD/USD struggles to preserve its recovery momentum on Monday.
US Dollar Index reclaims 91.00 after earlier decline.
Investors await February Manufacturing PMI data from US.
The NZD/USD pair suffered heavy losses in the second half of the previous week and lost nearly 200 pips in a two-day span. Although the pair edged higher toward 0.7300 at the start of the new week, it seems to be struggling to preserve its momentum. As of writing, NZD/USD was clinging to small daily gains at 0.7236.
The PMI figures from China over the weekend showed that the economic activity in the manufacturing sector grew at a softer pace than expected in February. Despite the disappointing data, the risk-on market environment helped the kiwi gather strength during the Asian trading hours.
The Beatings Will Continue
The beatings will continue until morale improves. The Hon. Jerome H. Mr. Powell, in statements this Tuesday:
There is a long way to go to maximum employment… We live in a time where there is significant disinflationary pressures around the world and where essentially all major advanced economy’s central banks have struggled to get to 2% (inflation). We believe we can do it, we believe we will do it. It may take more than three years…
Here Mr. Powell’s understrapper Federal Reserve Governor Lael Brainard grabs the knout:
The economy remains far from our goals in terms of both employment and inflation, and it will take some time to achieve substantial further progress.
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