The Reserve Bank of New Zealand cut its official exchange rate by 0.50% to 4.75%, weakening the New Zealand dollar.
➡️ The Reserve Bank of New Zealand cut its official exchange rate by 50 basis points to a new rate of 4.75%, as widely expected.. However, the bank issued a more dovish statement, saying that inflation had reached the bank's target range, clearly indicating a less restrictive monetary policy. This dovish bias has pushed the Kiwi lower in the last few hours.
➡️ Sentiment continues to be hawkish on the US dollar following last Friday's trigger event, when significantly stronger-than-expected US jobs and average earnings data were released. A solid majority of analysts now expect just another 0.50% of cuts before the start of 2025 (up from 78% of market participants). Both the 2-year and 10-year Treasury yields are trading or have recently traded above 4%. The U.S. dollar rose today to test a key resistance level at 102.25.
➡️ Since Tokyo opened today, the strongest major currencies have been the Australian and US dollars, while the weakest has been the New Zealand dollar, placing focus on the NZD/USD currency pair .
➡️ Gold and the S&P 500 index remain relatively close to their recent all-time highs, despite the rise of the US dollar.
➡️ The minutes of the latest FOMC meeting held in the United States will be released later today.
Credit by DailyForex.com