NZDUSD Analysis – December-21-2023

The NZDUSD climbed above $0.625, reaching a five-month high. This rise was helped by the US Federal Reserve and Bank of Japan’s softer policies. These policies weakened the US dollar and the yen but raised other major currencies. The NZDUSD gained value as well. This was due to higher prices for goods because of supply problems from the Red Sea attacks and the chance of lower interest rates, which made demand stronger.

In New Zealand, the central bank’s chief noted the unexpected slowdown in recent economic growth. This led to expectations of a sooner cut in the cash rate. Markets expect the RBNZ to lower rates as early as May next year. Last month, the RBNZ left the cash rate at 5.5% but hinted at another rate increase if inflation remains high.

NZDUSD analysis

NZDUSD Analysis – 4H Chart

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