NZD/USD loses traction below the 0.6200 mark amid a stronger Dollar

• NZD/USD loses momentum and currently trades around 0.6188, gaining 0.1% for the day.
• The US GDP expanded 2.4% in the second quarter, beating expectations of 1.8% and 2.0% prior.
• Market players will monitor the US Core Personal Consumption Expenditure (PCE) index.

The NZD/USD pair loses its traction and holds below the 0.6200 area in the early Asian session after retreating from a weekly high of 0.6275. The US dollar Index (DXY), a measure of the value of the Greenback against six other major currencies, jumps to its highest level since July 11, near 101.70, as upbeat US economic figures boosts the Greenback on Friday. 

As widely expected, the Federal Reserve (Fed) raised interest rates by 25 basis points (bps) to 5.25%–5.5% on Wednesday. The rate was last seen just before the housing market collapse in 2007 and marked the highest level in more than 22 years.

On Thursday, the US Bureau of Economic Analysis (BEA) first estimate reported that the US real Gross Domestic Product(GDP) expanded at a 2.4% annualized rate, beating the market expectation of 1.8% and following the 2% growth reported in the first quarter. Meanwhile, Durable Goods Orders rose 4.7% on a monthly basis to $302.5 billion. Initial Jobless Claims declined by 7,000 to 221,000 in the week ending July 22. It is the lowest reading in five months. 

Due to the lack of significant data released from the New Zealand docket this week, it is difficult for the Kiwi to construct a bullish narrative, and the offshore events will be in the spotlight. However, the market expects a more hawkish stance from the Reserve Bank of New Zealand (RBNZ), which might raise the risk of a hard landing. This, in turn, could weigh on the Kiwi and act as a headwind for NZD/USD.

Looking ahead, the USD's valuation will likely continue to influence the pair's movement later in the day. Market participants will keep an eye on the US Core Personal Consumption Expenditure (PCE) index, the Fed's preferred inflation gauge. The figure is expected to drop from 4.6% to 4.2% annually.