- The New Zealand dollar advances, favored by a slight correction of the USD while investors prepare for the Fed decision.
- It is widely expected that the Fed keeps the rates in the range of 4.25%-4.50%.
- Something before, a significant bounce of the GDP of the second trimester of the US could provide support for a hard line of the Fed.
The New Zealand dollar is showing a slight attempt to recover against its US counterpart, reducing losses after a four -day running streak, while investors prepare for the monetary policy decision of the US Federal Reserve that will be given later today.
The Kiwi recovered from minimums of 0.5945, but is still trapped within Tuesday’s range so far, with limited rise at 0.5970. From a broader perspective, the torque has been moving from one place to another within the range of the last two months, approximately between 0.5900 and 0.6100.
It is observed that the US dollar is experiencing a slight taking of benefits before the Fed decision. It is widely expected that the bank maintains the rates in the current range of 4.25%-4.50%, but investors will be eager to know more about the September decision.
Future markets are valuing a 65% probability of a rate cut after summer, but recent data confirmed that the US economy remains resistant, which gives more margin to the bank to maintain its cautious posture until the economic impact of tariffs is evidenced. The risk is high for a hard line message that could give an additional impulse to the US dollar.
Something before, the US preliminary GDP is expected to show that the US economy grew 2.4% in the second quarter after a 0.5% contraction in the first, providing greater support to the Fed to maintain the highest interest rates for a longer time.
Economic indicator
Anuced Gross Domestic Product
The annualized GDP is published by the office Bureau of Economic Analysis and shows the value of goods, services and structures produced in a country in the period of one year. It is a gross measure of economic activity because it indicates the rhythm at which the economy of a country grows. A reading superior to expectations is bullish for the dollar, while a lower reading is bassist.
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Next publication:
LIE Jul 30, 2025 12:30 (PREL)
Frequency:
Quarterly
Dear:
2.4%
Previous:
-0.5%
Fountain:
US Bureau of Economic Analysis
The Us Bureau of Economic Analysis (BEA) Releases The Gross Domestic Product (GDP) Growth on Annualized Basis for Each Quarter. After publishing the first estimate, The Bea reviews The Data Two More Times, With The Third Release Representing the Final Reading. Usually, The First Estimate is The Main Market Move and a Positive Surprise is to USD-POSITIVE DEVELOPMENT WHILE A Disappointing print is Likely to Weight on the Greenback. Market Participants usually DESMISS The Second and Third Releases As The Are generally not significant angouch to MeaningFully Alter The Growth Picture.
Economic indicator
Fed interest rates decision
The Federal Reserve (Fed) Delibera on monetary policy and makes a decision on interest rates in eight preprogrammed meetings per year. It has two mandates: maintain inflation in 2% and maintain full employment. Its main tool to achieve this is to establish interest rates, both to those that it lends to banks and to those that banks lend each other. If you decide to raise the fees, the US dollar (USD) tends to strengthen since it attracts more foreign capital tickets. If the rates lower, it tends to weaken the USD since capital is drained towards countries that offer greater returns. If the rates remain unchanged, the attention focuses on the tone of the Federal Open Market Committee (FOMC), and if it is a hard line (expectancy of higher interest rates in the future) or moderate (expectation of lower rates in the future).
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Next publication:
LIE Jul 30, 2025 18:00
Frequency:
Irregular
Dear:
4.5%
Previous:
4.5%
Fountain:
Federal Reserve
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.
