NZDUSD Fundamental Analysis – 17-September-2024

The New Zealand dollar fell to around $0.618 (NZD/USD) after gaining 0.7% the day before. This drop happened because of new signs that China’s economy, New Zealand’s biggest trading partner, is struggling.

Upcoming GDP Data

New Zealand’s GDP data for the second quarter will be released on Thursday. Markets expect a 0.4% drop compared to the previous quarter. This has raised worries about the country’s economic health and the need for more monetary policy easing.

Expected Rate Cuts

Markets expect a 0.25% rate cut in October, with a 25% chance of a bigger 0.50% cut. These expectations are due to weak economic data.

Impact of US Dollar

The New Zealand dollar didn’t fall too much because the US dollar weakened. This happened as traders expect a significant rate cut from the US Federal Reserve this week.

• Also read: AUD/USD Fundamental Analysis – 17-September-2024

Conclusion

In summary, the New Zealand dollar’s recent dip is due to economic concerns in China and upcoming GDP data. Markets are expecting rate cuts to support the economy. A weaker US dollar somewhat protected the Kiwi from bigger losses.