• The NZD/USD reversed its course during the American session, falling from a high of 0.6222 to 0.6180.
• The US reported mixed mid-tier data.
• Chair Powell’s hawkish remarks during his second-day testimony before the US Congress boosted US yields.

On Thursday, the NZD/USD cleared daily gains, which saw the pair jumping to a daily high of 0.6222 past the 100-day Simple Moving Average (SMA). However. it failed to consolidate above it and retreated to 0.6180. In that sense, hawkish remarks by Jerome Powell during his testimony before the US Senate fueled US bond yields and helped the Greenback gain traction. On the New Zealand side, no relevant reports will be released on Thursday.

Investors bet on higher rate hikes by the Fed following Chair Powell’s testimony

In his appearance before the US Senate's Banking, House, and Urban Affairs Committee, Powell reiterated that the central bank has a considerable distance to cover. He provided reassurance that monetary policy remains effective in its efforts to combat inflation. Chair Powell also confirmed that the Federal Open Market Committee (FOMC) generally believes that raising rates once more this year and potentially twice more would be appropriate. As a reaction, the 2-year bond yield jumped to its highest level since March to 4.8% and gave further traction to the USD. 

On the other hand, the US Bureau of Census Analysis revealed 260K Jobless Claims for the week ending June 16, slightly exceeding the expected 262,000. Additionally, the Chicago Fed National Activity index contracted by 0.15 in May vs the consensus of 0, and Existing Home Sales reached 4.3M, surpassing the consensus estimate of 4.25M, indicating resilience in the housing sector.

Attention now turns to the release of the S&P Global PMIs on Friday, where investors will get a clear outlook regarding the US economy’s health