Skip to content NZDUSD Fundamental Analysis – 17-October-2024
The New Zealand dollar hovered near $0.606 on Thursday, close to its weakest point since August 19th, following disappointing inflation figures. These figures raised expectations that the central bank might implement substantial monetary easing soon.
The NZD/USD 4-hour chart below demonstrates the price, support, and resistance levels.
New Zealand Inflation Drops Within Target
The annual inflation rate decreased to 2.2% in the third quarter, down from 3.3% in the prior quarter. This is the first time in over three years that inflation has dropped within the 1-3% target range set by the Reserve Bank of New Zealand.
Given the significant drop in inflation and potential recession risks, the Reserve Bank of New Zealand is expected to enact a major rate reduction at its upcoming final meeting of the year in November.
Lackluster Response from China’s Policy Briefing
Additionally, a recent policy briefing in China did not meet investor expectations and did not introduce any noteworthy new measures. This lack of action has left many investors feeling underwhelmed.
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