NZD/USD falls in the first session of five

New Zealand dollar fell during the Asian session, to bounce for the second session of its highest since April 22nd against the US dollar, following the development and economic data by the New Zealand economy, and on the threshold of an economic data release expected on Wednesday by the US economy, the largest economy in the world, in conjunction with the meeting of the Federal Open Market Committee in Washington.

As of 02:26 GMT, NZD/USD fell 0.31% to 0.6654 compared to the opening levels of 0.6675, with a high of 0.6681 and a low of 0.6629.

The New Zealand economy released the labor market data, which showed a drop in the unemployment rate index to 4.2% in line with expectations, compared to 4.3% in the fourth quarter of last year, in conjunction with the reading of the change in employment index reading, which fell 0.2% compared to a rise of 0.1% in the fourth quarter, not meeting the expectations which indicated a rapid growth to 0.5%, and the reading the cost of the currency in the private sector showed a slow growth to 0.3% compared to the previous reading of the fourth quarter and expectations at 0.5%.

On the other hand, investors are looking for the US economy to reveal preliminary data of the labor market, along with the release of the change in private sector jobs index, which may reflect an acceleration of job creation to 181 thousand jobs added, against 129 thousand jobs added in March, this comes hours before the release of the monthly report of non-agricultural jobs and unemployment rates in addition to the average income per hour for the last month.

Markets are also looking for the final reading of the Markit Industrial PMI on the United States, which may reflect the stability of the expansion at 52.4, unchanged from the previous reading of the previous month and the previous reading for March, this comes before the release of the Institute of Industrial Suppliers index, which may show a contraction in the expansion to 55.0 versus 55.3 in March.

To the decisions and directions expected by the Federal Open Market Committee after the expiration of its meeting which began yesterday and ends at 18:00 GMT, amid expectations that the monetary policy makers of the Federal Reserve will keep the short-term benchmark interest rates between 2.25% and 2.50% and work to reduce the cuts of bond re-purchases before it's frozen by September.

It is also expected to witness the Federal Reserve Governor, Jerome Powell's press conference, who stated earlier that the committee will be patient about raising interest rates in the up-coming period, and that they will be closely watching the economic developments of the world's largest economy and the impact of the external challenges, after the expiration of the Federal Committee meeting, the release of the monetary policy makers statement and the Committee's decision on the federal funds interest in about half an hour.