Skip to content NZDUSD Fundamental Analysis – 12-August-2024
The New Zealand dollar climbed to approximately $0.602 (NZD/USD) as investors focused on Wednesday’s upcoming Reserve Bank of New Zealand (RBNZ) meeting.
Central Bank Likely to Hold Steady
It’s widely anticipated that the RBNZ will maintain its current cash rate at 5.5% for the ninth consecutive time. While this steady approach reflects the bank’s cautious stance, there are ongoing concerns about the resilience of the New Zealand economy.
Economic Indicators Paint a Mixed Picture
Recent reports revealed a slight increase in New Zealand’s unemployment rate during the second quarter, although the rise was less significant than expected. At the same time, inflation expectations fell to their lowest levels in three years during the third quarter.
This decline strengthens the argument for a potential rate cut in the future, as lower inflation could give the central bank room to ease monetary policy.
- Also read: AUDUSD Fundamental Analysis – 12-August-2024
Global Market Eyes on US Inflation Data
Looking beyond New Zealand, global markets are also eagerly awaiting the release of US inflation data later this week. The results of this data could provide further insight into the Federal Reserve’s next moves regarding interest rate cuts.
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