NZD/USD recovers its recent losses around the mid-0.6200s, US GDP data eyed

• NZD/USD gains ground near 0.6253 despite a modest rebound in USD.
• New Zealand ANZ – Roy Morgan Consumer Confidence for November improved to 93.1 vs. 91.9 prior.
• Existing Home Sales came in at 3.82M in November, better than the 3.77M expected.
• A new estimate for GDP growth numbers for Q3 will be in the spotlight on Thursday.

The NZD/USD pair hovers around the mid-0.6200s after retreating from a five-month high slightly below 0.6300 during the early Asian session on Thursday. At press time, the pair is trading at 0.6253, gaining 0.03% for the day.

The Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr stated on Wednesday that they were surprised by GDP data last week indicating the economy shrank, but they will be back in February with the monetary policy statement.”

On Thursday, the New Zealand ANZ – Roy Morgan Consumer Confidence for November improved to 93.1 from 91.9 in the previous reading. Earlier this week, the Business NZ Performance of Services Index (PSI) rose to 51.2 in November versus 48.9 prior.

On the USD’s front, the annual rate of Existing Home Sales came in at 3.82M in November, beating the market expectation of 3.77M. Additionally, CB Consumer Confidence for December climbed from 101.0 to 110.07. The Greenback attracted some buyers following the upbeat data. However, the anticipation of three rate cuts from the Federal Reserve (Fed) next year might cap the USD’s upside and create a tailwind for the NZD/USD pair.

Philadelphia Fed President Patrick Harker said on Wednesday that any future interest rate rises while signaling openness to lowering short-term borrowing costs, albeit not imminently.

Looking ahead, New Zealand will release Credit Card Spending on Thursday. Later in the day, the US weekly Initial Jobless Claims, a new estimate for Gross Domestic Product (GDP) for the third quarter (Q3), and the Philly Fed Manufacturing Survey will be due.