NZD/USD extends its decline for the third consecutive day, trading near 0.5870, marking a three-month low during Thursday's Asian session.
NZD/USD loses ground due to Trump trades and less dovish comments from Fed officials. Fed's Alberto Musalem stated that persistent inflationary pressures force the Fed to halt its rate-cutting strategy.
expects to deliver a bumper 75 basis point rate cut in November as the inflation rate eases. NZD/USD extends its decline for the third consecutive day, trading near 0.5870, marking a three-month low during Thursday's Asian session. The pair's downward movement is largely due to the strengthening US Dollar , fueled by Trump trades and less dovish remarks from Federal Reserve officials following US inflation data.
impact the New Zealand Dollar? The Reserve Bank of New Zealand aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.
Majors Macroeconomics Newzealand RBNZ
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