- NZD/USD gains ground on Monday amid modest USD weakness.
- Dovish Fed expectations and positive risk tone weaken the dollar.
- China’s economic woes and RBNZ rate cut expectations limit further gains for the pair.
The NZD/USD pair is attracting some buyers near the 0.5880 area during Monday’s Asian session amid a weaker US Dollar (USD), albeit lacking bullish conviction. Spot prices are currently trading around the 0.5900 round figure and remain well within striking distance of the lowest level since early May touched last Thursday.
The US Personal Consumption Expenditure (PCE) Price Index data released on Friday added to recent signs of easing inflationary pressures and reaffirmed expectations that the Federal Reserve (Fed) will start cutting interest rates in December. This, in turn, dragged US Treasury bond yields to a near two-week low, which, along with risk momentum, keeps USD bulls on the defensive and turns out to be a key factor providing some support to the NZD/USD pair.
That said, lingering concerns about a slowdown in China, the world’s second-largest economy, could continue to act as a headwind for antipodean currencies, including the New Zealand dollar. Adding to this are rising expectations of an early interest rate cut by the Reserve Bank of New Zealand (RBNZ), reinforced by the weaker CPI report released last week, which contribute to capping the NZD/USD pair. This, in turn, warrants some caution before positioning for further intraday gains.
Traders may also refrain from placing aggressive directional bets and prefer to wait for the outcome of the FOMC’s two-day monetary policy meeting on Wednesday. The expected Fed decision, along with important US macroeconomic releases scheduled for the start of a new month, including the Non-Farm Payrolls report, will play a key role in influencing the USD price dynamics in the near term. This, in turn, will provide a significant boost to the NZD/USD pair.
US Dollar PRICE Today
The table below shows the exchange rate of the US Dollar (USD) against major currencies today. The US Dollar was the strongest currency against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.12% | -0.03% | -0.09% | -0.23% | -0.14% | -0.08% | |
| EUR | 0.05% | -0.09% | 0.02% | -0.01% | -0.13% | -0.07% | -0.01% | |
| GBP | 0.12% | 0.09% | 0.08% | 0.06% | -0.04% | 0.04% | 0.09% | |
| JPY | 0.03% | -0.02% | -0.08% | -0.09% | -0.19% | -0.09% | -0.03% | |
| CAD | 0.09% | 0.00% | -0.06% | 0.09% | -0.11% | -0.06% | 0.02% | |
| AUD | 0.23% | 0.13% | 0.04% | 0.19% | 0.11% | 0.10% | 0.13% | |
| NZD | 0.14% | 0.07% | -0.04% | 0.09% | 0.06% | -0.10% | 0.05% | |
| CHF | 0.08% | 0.00% | -0.09% | 0.03% | -0.02% | -0.13% | -0.05% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
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.
