- NZD/USD moves lower for the sixth consecutive day in reaction to a not-so-optimistic Chinese economic outlook.
- A modest USD pullback could lend support to the pair, although expectations of a 50 basis point RBNZ rate hike favor the bears.
- Decreasing odds of aggressive Fed easing limits the USD’s decline and validates the negative bias for the pair.
The NZD/USD pair is attracting some sellers following a rally in the Asian session towards the 0.6145 region and moves into negative territory for the sixth consecutive day on Tuesday. Spot prices fall to a one-month low in the last hour, with bears waiting for a sustained break below the 200-day SMA, around the 0.6100 level, before opening new positions.
The National Development and Reform Commission (NDRC), China’s state planner, said on Tuesday that downward pressure on the Chinese economy is increasing. This offsets recent optimism fueled by China’s stimulus bonanza and turns out to be a key factor behind the latest leg of a flash decline seen in the past hour. In addition to this, expectations of a sizeable interest rate cut by the Reserve Bank of New Zealand (RBNZ) are contributing to the selling tone around the NZD/USD pair.
The US Dollar (USD), on the other hand, remains defensive below a seven-week high hit on Friday, although it lacks significant selling amid declining odds of more aggressive easing by the Federal Reserve (Fed). Furthermore, escalating geopolitical tensions in the Middle East could continue to offer support to the safe-haven Dollar and divert flows from the risk-sensitive NZD, suggesting that the path of least resistance for the NZD/USD pair remains down. low.
economic indicator
Interest rate decision
RBNZ Interest Rate Decision Announced by the Reserve Bank of New Zealand.This rate affects a range of interest rates set by commercial banks, building societies and other institutions towards their own savers and borrowers. It also tends to affect the price of financial assets, such as bonds, stocks and exchange rates, which affect consumer and business demand in a variety of ways.
Next post:
Wed Oct 09, 2024 01:00
Frequency:
Irregular
Dear:
4.75%
Previous:
5.25%
Fountain:
Reserve Bank of New Zealand
The Reserve Bank of New Zealand (RBNZ) holds monetary policy meetings seven times a year, announcing its decision on interest rates and the economic assessments that influenced its decision. The central bank offers clues about the economic outlook and future policy path, which are highly relevant to the valuation of the NZD. Positive economic developments and optimistic outlook could lead the RBNZ to tighten policy by raising interest rates, which tend to be bullish for the NZD. Policy announcements are usually followed by Governor Adrian Orr’s press conference.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.