NZDUSD Hits $0.60 as Investors Brace for Fed Decision

On Monday, the New Zealand dollar climbed to about $0.60, recovering from last week’s losses. A weaker U.S. dollar supported this rebound as investors reassessed the presidential election results based on new poll data.

Additionally, markets are preparing for the Federal Reserve’s upcoming policy decision and China’s NPC standing committee meeting this week. These events are significant because China is New Zealand’s largest trading partner.

New Zealand Dollar Under Pressure with Expected Rate Cut

However, the Kiwi faces pressure at home. There is growing expectation that the Reserve Bank of New Zealand will adopt a more dovish (accommodative) stance now that inflation has returned to the central bank’s target range. Markets have fully priced in a half-percentage-point interest rate cut for November.

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Ethan O. Miller

Ethan O. Miller is a seasoned Forex analyst. His insightful articles offer a unique perspective on currency trends, aiding both novice and experienced traders in navigating the Forex market.

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