NZDUSD Hits 4-Month Low Amid US Rate Hike Views

NZDUSD Analysis – The New Zealand dollar fell below $0.60, reaching a four-month low as the US dollar strengthened. This happened because investors think US interest rates might stay high, even as other big economies begin to lower theirs.

Recent data in New Zealand revealed a surprise economic shrinkage for the last quarter, marking the onset of a technical recession. The economy decreased by 0.1% quarter-over-quarter in the previous three months, following a 0.3% drop in the last quarter, contrary to the expected 0.1% growth.

As a result, investors are now betting on an earlier interest rate cut by New Zealand’s central bank, with a 55% likelihood of it happening in July. Additionally, a quarter-point rate reduction in August is now fully anticipated.

NZDUSD Hits 4-Month Low Amid US Rate Hike Views