NZD/USD continues its descent, nearing the 0.6100 level, marking a second consecutive day of losses during the European trading session on Friday. The stronger-than-expected United States (US) GDP Annualized figures have bolstered the US Dollar (USD), contributing to the downward pressure on the NZD/USD pair.

Traders are eagerly awaiting the release of the Personal Consumption Expenditures (PCE) Price Index data, scheduled for Friday. This information will offer valuable insights into the economic landscape of the US, shaping expectations for the Federal Reserve’s (Fed) policy decision in the upcoming March meeting. It is worth noting that the market has already priced in the likelihood of no policy adjustments by the Fed during the forthcoming meeting on January 31.

Meanwhile, there is potential for the NZD to regain strength, as Kiwi consumer inflation remains above the Reserve Bank of New Zealand’s (RBNZ) target range of 1.0% to 3.0%. The outlook for the NZD/USD pair hinges on the interplay of these economic factors in the near term.