Skip to content NZDUSD Fundamental Analysis – 7-June-2024
The New Zealand dollar (NZD) has been steady around $0.619, following a recent peak, as anticipation of a Federal Reserve (Fed) rate cut this year has weakened the US dollar. Recent weaker US economic data and softer labor market figures have increased expectations of two rate cuts by the Fed, possibly starting as early as September.
This economic context has been pivotal for investors, who are now closely monitoring the release of the US jobs report. This report is crucial as it could provide more insights into the labor market’s health and the potential timing of the Fed’s interest rate cuts.
New Zealand Rates Boost Kiwi Stability
In New Zealand, the Kiwi has remained resilient despite a slowing economy, thanks to the country’s relatively high interest rates. The Reserve Bank of New Zealand (RBNZ) is expected to keep its policy stable until at least mid-2025. This period of stability will allow the RBNZ to thoroughly assess economic data before making any changes.
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