NZDUSD Hits 4-Month Low Amid Economic Downturns

NZDUSD Analysis – The New Zealand dollar fell to about $0.60, its lowest point in four months, due to the strengthening US dollar. This surge came as more people expected the US to maintain higher interest rates for longer, even as rates began to drop in other significant economies. Furthermore, recent data revealed that New Zealand faced an unexpected downturn, entering a technical recession.

The country’s economic output decreased by 0.1% quarter-over-quarter in the last three months of the year, following a decline of 0.3% in the prior quarter. This was contrary to the anticipated 0.1% increase. Consequently, investors have adjusted their expectations, now foreseeing a 55% likelihood that the Reserve Bank of New Zealand will lower interest rates as early as July. Moreover, there is unanimous agreement that a quarter-point reduction by the RBNZ is expected in August.

NZDUSD Hits 4-Month Low Amid Economic Downturn