Skip to content NZDUSD Fundamental Category – 22-October-2024
The New Zealand dollar climbed to approximately $0.605 on Tuesday. This rise came after the currency had dropped to a two-month low earlier that day. The increase was mainly due to China, New Zealand’s biggest trading partner, recently lowering its interest rates.
The below NZD/USD 4-hour chart demonstrates the price, support, and resistance levels.
U.S. Fed’s Outlook Weighs on NZ Dollar Recovery
Despite its recovery, the New Zealand dollar still faces challenges. The strong U.S. dollar continues to put pressure on it. This strength comes from the anticipation that the U.S. Federal Reserve might not reduce interest rates as much as previously expected in the near future.
Moreover, uncertainty about global issues like the conflict in the Middle East and the forthcoming U.S. presidential election also affects market confidence.
NZD Faces Potential Stress as RBNZ Rate Cut Looms
On the local scene, the New Zealand dollar could be under more stress. Investors believe there is still a possibility that the Reserve Bank of New Zealand may decide on a significant rate cut of 75 basis points at its year-end meeting in November. However, a smaller cut of 50 basis points is already expected.
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