New Zealand dollar holds above US$0.59

Key Movers

On the data front, in the United States overnight real gross domestic product (GDP) increased at an annual rate of 1.6 percent in the first quarter of 2024, according to the “advance” estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2023, real GDP increased 3.4 percent. The GDP estimate released today is based on source data that is incomplete or subject to further revision by the source agency. The “second” estimate for the first quarter, based on more complete source data, will be released on May 30, 2024. Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected decelerations in consumer spending, exports, state and local government spending, and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment. Imports accelerated. Other relevant data for the US dollar showed Initial Jobless Claims falling slightly to 207K from 212K, despite an expected rise to 214K, and Pending Home Sales coming in at 3.4% in March, easily beating estimates of 0.3% and February’s 1.6%. The Dow Jones declined 1.82% top-to-bottom on Thursday, hitting a seven-day low of 37,745.54 and turning negative for the week. Despite the major equity index reclaiming nearly half of the day’s declines, the DJIA remains well back from the day’s peaks at 38,446.43. Looking ahead and today we will see the latest Personal Consumption Expenditures (PCE). The Federal Reserve (Fed) remains firm on its stance and doesn’t seem in a rush to start easing and market hawkish adjustments provide a cushion to the USD. Personal Consumption Expenditures (PCE) data from March will likely affect those investors’ expectations.