- NZD/USD pair makes advances near 0.6210 due to USD weakness
- New Zealand’s Terms of Trade Index for Q3 drops 0.6% QoQ
- Fed Chair Jerome Powell indicates no rush to make rate decisions
The NZD/USD pair gains traction towards the 0.6200 level in the early Asian session on Monday. The speculation about the US Federal Reserve (Fed) being done with rate hikes is causing the US Dollar (USD) to weaken and lifting the NZD/USD pair. Currently, the pair is trading near 0.6210, up 0.11% on the day.
Early on Monday, New Zealand’s Terms of Trade Index for Q3 fell 0.6% QoQ, compared to 0.3% prior. The good export prices decreased 1.5% QoQ from the previous reading of a 6.8% increase, while import prices for goods declined 0.8% QoQ from a 1.0 drop in the previous reading.
The Reserve Bank of New Zealand (RBNZ) kept the interest rate steady at 5.5% last week but noted that inflation remained elevated and further policy tightening may be necessary if price pressures do not ease. This hawkish stance from the RBNZ supports the New Zealand Dollar (NZD) and acts as a tailwind for the NZD/USD pair.
On the other hand, the dovish tone from the Fed, with the market now expecting the US central bank to end the tightening cycle and start cutting rates as early as next March. Fed Chair Jerome Powell stated on Friday that it was early to dismiss additional rate hikes or begin discussing cuts.
In addition, the US ISM Manufacturing PMI came in weaker than expected and remained unchanged at 46.7 in November, the Institute for Supply Management (ISM) revealed on Friday.
Market players will monitor the US Factory Orders for October. Later today, New Zealand’s ANZ Commodity Price and US ISM Services PMI will be due on Tuesday. Attention will shift to US Nonfarm Payrolls (NFP) on Friday, which is expected to add 180K jobs in November.
Details on these pages includes positive declarations that include dangers and unpredictabilities. Markets and instruments profiled on this page are for informative functions just, and ought to not in any method discovered as a suggestion to purchase or offer in these possessions. You ought to do your own extensive research study before making any financial investment choices. FXStreet does not in any method assurance that this info is devoid of errors, mistakes, or product misstatements. It likewise does not ensure that this info is of a prompt nature. Buying Open Markets includes a lot of danger, consisting of the loss of all or a part of your financial investment, in addition to psychological distress. All dangers, losses and expenses related to investing, consisting of overall loss of principal, are your obligation. The views and viewpoints revealed in this short article are those of the authors and do not always show the main policy or position of FXStreet nor its marketers.
