Skip to content NZDUSD Fundamental Analysis – 21-October-2024
The New Zealand dollar climbed to approximately $0.606 this Monday, driven by positive news from China. China has reduced its key lending rates as New Zealand’s main trade partner. This action is part of China’s larger plan to boost its economy through various rate reductions and stimulus measures.
The below NZD/USD 4-hour chart demonstrates the price, support, and resistance levels.
Impact of China’s Economic Decisions
China’s decision to cut rates has boosted the New Zealand dollar. China is a significant market for New Zealand’s exports, and its economic health directly affects New Zealand’s economy.
In New Zealand, a recent report showing low inflation has led people to expect that the Reserve Bank of New Zealand might cut interest rates more deeply to encourage spending and investment. The market is largely predicting a rate cut of 50 basis points in November, although there’s a smaller chance that the cut could be as large as 75 basis points.
Looking Ahead: Potential Rate Cuts
The combination of China’s economic adjustments and New Zealand’s domestic financial climate has set the stage for potential interest rate reductions by New Zealand’s central bank. These anticipated cuts are seen as efforts to stimulate economic growth further locally.
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