Skip to content NZDUSD Struggles as Rate Cut Expectations Rise
On Monday, the New Zealand dollar fell to about $0.595, hitting its lowest point in nearly three months. This drop came as the US dollar grew stronger, driven by increasing expectations that Donald Trump might win the upcoming US presidential election and a more careful stance from the Federal Reserve regarding further rate reductions.
The NZD/USD 4-hour price chart below demonstrates the price, support, and resistance levels.
New Zealand Eyes Major Rate Cut This November
In New Zealand, market players expect a significant rate cut of half a point from the Reserve Bank of New Zealand in November. Some even predict a larger cut of 75 basis points, adding more pressure on the New Zealand dollar.
- Next read: EUR/USD Climbs from Low on ECB Rate Cut News
However, the New Zealand dollar did better against the Japanese yen after Japan’s ruling party lost its majority in parliament. This political shift in Japan is likely to delay any additional rate increases.
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