On Wednesday, the NZD/USD currency pair stayed low, trading at about $0.562, influenced by the strong US dollar. This strength in the US dollar came from positive US economic reports, which increased Treasury yields.
Fed May Slow Rate Cuts as US Jobs Grow
Recent job and service sector reports suggest the US Federal Reserve might reduce the frequency of its rate cuts. Additionally, there is growing attention on how the upcoming tariff measures proposed by President-elect Donald Trump, especially those directed at China, might affect the New Zealand dollar.
This is crucial since New Zealand counts China as a major export partner. Back home, market experts predict the Reserve Bank of New Zealand might lower rates significantly by 50 basis points in February due to the severe economic downturn.