For the second consecutive day, NZDUSD is falling amid persistent USD purchasing. A rising risk tone and declining US bond rates do nothing to help the pair. Investors are now anticipating the critical US CPI data for a new change in direction.

The NZDUSD pair is still under some selling pressure on Thursday for the second consecutive day, and it is falling away from the peak it reached earlier this week, which was the highest since September 19. Through the first part of the European session, the pair continues to fall, and in the last hour, it hits a new daily low below the mid-0.5800s.

The US Dollar continues to gather momentum after making a significant recovery from a multi-week low the day before, considered a major driver pushing the NZDUSD pair down. A repositioning trade in expectation of higher US consumer inflation numbers may cause a stronger USD movement. But any additional gains for the dollar may be limited by a slight decline in the rates on US Treasury bonds.

In addition, a generally upbeat atmosphere in the global markets may work against the safe-haven dollar and benefit the risk-averse Kiwi. Ahead of the important US CPI data, traders could also hesitate from making risky bets and instead choose to sit on the sidelines. The data will impact the Fed’s rate-hiking cycle, which will fuel USD demand and give the NZDUSD pair new life.

The title After reporting 8.2% last month, the US CPI is predicted to slow to 8% YoY in October. A positive surprise will rekindle expectations for the Fed to raise interest rates more quickly and strengthen the US dollar, which will pave the way for the NZDUSD pair to depreciate more soon. Even from a technical standpoint, this week’s rejection around the crucial level of 0.6000 favors bearish traders and strengthens the dismal prognosis for the short term.