Skip to content NZDUSD Fundamental Analysis – 5-September-2024
The New Zealand dollar stayed close to $0.62 (NZD/USD) as recent weak US economic data sparked fears of a potential slowdown in the American economy. These concerns have led traders to believe that the Federal Reserve may implement a more significant interest rate cut in the near future.
Traders Await Key US Job Reports
All eyes are on the US payrolls report, which is set to be released on Friday. However, traders are also monitoring the jobless claims data that is coming out today. This information will likely influence the market’s expectations for the Federal Reserve’s next steps.
New Zealand’s Interest Rate Shift
In New Zealand, the Reserve Bank recently cut the official cash rate for the first time since it began tightening policies after the pandemic. The decision was made to help manage inflation, a key concern for the country.
What Investors Are Expecting Next
Looking ahead, investors are anticipating further action from the Reserve Bank. At its next meeting in October, there’s a growing belief that the central bank will reduce interest rates again, with a 37% chance of a significant 50 basis point cut.
This potential move could have important implications for the economy and financial markets.
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