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• NZD/USD remains stable as traders await key economic data from the United States (US).
• The Business NZ Manufacturing PMI fell to 41.1 in June, marking the 15th consecutive month of contraction.
• The US Consumer Price Index declined by 0.1% MoM in June, marking its lowest level in over three years.

NZD/USD hovers around 0.6100 in early European trading hours on Friday as investors react to New Zealand’s weak PMI data. The Business NZ Manufacturing PMI dropped to 41.1 in June from 47.2 in May. This has marked the 15th consecutive month of contraction and the third lowest value for a non-COVID lockdown month. Additionally, traders are awaiting the Michigan Consumer Sentiment Index and the US Producer Price Index (PPI), both due on Friday, for further insights into the US economy.

The NZD/USD pair received support from softer-than-expected US Consumer Price Index (CPI) data for June has heightened expectations of a potential Federal Reserve (Fed) rate cut in September. The core CPI, which excludes volatile food and energy prices, rose by 3.3% year-over-year in June, compared to May's increase of 3.4% and the same expectation. Meanwhile, the core CPI increased by 0.1% month-over-month, against the expected and prior rise of 0.2%.

Additionally, Federal Reserve Bank of Chicago President Austan Goolsbee said on Thursday that the US economy appears to be on track to achieve 2% inflation. This suggests Goolsbee is gaining confidence that the time for cutting interest rates may soon be approaching. He also stated "My view is, this is what the path to 2% looks like," according to Reuters.

Earlier this week, the Reserve Bank of New Zealand (RBNZ) maintained its cash rate at 5.5% on Wednesday, as expected. However, it suggested potential rate cuts in August if inflation declines as anticipated. The New Zealand Dollar (NZD) might come under pressure due to the RBNZ's dovish monetary policy statement.

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