Skip to content NZDUSD Fundamental Analysis – 15-October-2024
As investors awaited important inflation figures, the New Zealand dollar fell to approximately $0.609 on Tuesday. This financial anticipation centers around the upcoming third-quarter Consumer Price Index (CPI) data, which could significantly influence economic decisions.
The NZD/USD 4-hour chart below demonstrates the price, support, and resistance levels.
Inflation Forecast: Hopes for Stability
In New Zealand, inflation is expected to decrease, aligning with the central bank’s 1-3% target. Predictions suggest a drop to 2.2% for the September quarter, down from 3.3%. This shift indicates a movement towards economic stability and could influence future monetary policies.
The financial markets are highly anticipatory of the Reserve Bank of New Zealand’s (RBNZ) next steps, with an 88% probability forecasted for a significant rate reduction at the year’s final meeting in November. Such monetary adjustments are pivotal in shaping the country’s economic landscape.
US Dollar Strength and Chinese Stimulus Woes
The Kiwi also faces external economic pressures, notably from a robust US dollar. Expectations that the Federal Reserve might slow its rate cuts have contributed to this strength, affecting the NZD’s position.
Furthermore, China’s lack of detailed economic support measures following a recent fiscal stimulus announcement has also clouded market sentiment.
RBNZ’s Strategic Decisions Ahead
With all eyes on the RBNZ’s upcoming actions, domestic inflation trends and international economic developments will be critical. Together, these factors will play a significant role in shaping the financial strategies in the following months.
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