NZD/USD Analysis 2-July-2024

NZD/USD—The New Zealand dollar dropped to $0.605 due to increased demand for the US dollar and a worsening outlook for New Zealand’s business activity.

The Kiwi did not recover on Monday despite a fall in the US dollar caused by weaker ISM Manufacturing PMI data and soft PCE inflation last week. This has led to speculation that the Federal Reserve might start easing monetary policy later this year.

NZD/USD Analysis 2-July-2024

New Zealand Business Confidence Hits New Low

Investors eagerly await Fed Chairman Jerome Powell’s speech for more clues, with the FOMC minutes set to be released on Wednesday. Domestically, recent data from NZIER revealed that business confidence in New Zealand fell further in the second quarter. Additionally, expectations that the Reserve Bank of New Zealand will cut rates sooner than expected have added to the selling pressure on the Kiwi.