NZD/USD trims losses near 0.6100 ahead of US CPI data

• NZD/USD rebounds to 0.6090 in Thursday’s early Asian session. 
• The RBNZ held its policy rate at its July meeting and delivered a less hawkish tone. 
• Fed’s Powell said central bank will make interest rate decisions based on data, not in consideration of political factors. 

The NZD/USD pair trades on a stronger note around 0.6090 during the early Asian session on Thursday. The pair recovers some lost ground on the weaker US Dollar (USD) after retreating from the weekly high of nearly 0.6155. The release of the US Consumer Price Index (CPI) data for June will be in the spotlight on Thursday.

On Wednesday, the Reserve Bank of New Zealand (RBNZ) decided to hold its Official Cash Rate (OCR) for the eighth consecutive meeting at 5.5%, the highest since December 2008. The board notes a risk that domestically driven inflation could be more persistent in the near term. The central bank expected headline inflation to return to within the 1 to 3% target range in the second half of this year. A less hawkish view on inflation is likely to exert some selling pressure on the Kiwi for the time being.