Nzdusd Flat Near Monthly Top

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Nzdusd Flat Near Monthly Top

Nzd/Usd Flat Near 0.6240, Eyes The Monthly Top

NZD/USD is mostly flat near the 0.6235 - 0.6240 region and is showing zig-zag price action on Friday. It is important to note that NZD/USD is trading close to the monthly peak made on Thursday.

The recent bout of NZD strength comes as the US Dollar is struggling to find buyers and is now trading at a YTD low. The reason for this is the rumors that the Fed will not stop with just one rate cut and will introduce more in November/December.

Us Interest Rate To Decline To 3.4 In 2025

In 2025, the interest rate in the USA will fall to around 3.4%. In 2026, it will fall even lower and touch the 2.9%. So, these are the things that are putting pressure on the USD and forcing the traders to opt for other currencies.

Also, the global equity markets are on the rise amid a risk-on rally which has also undermined the value of assets such as USD. However, this is an ideal situation for NZD, which benefits from the risk-on theme.

However, the one headwind for the NZD is the fear that China is not doing enough to support the economy. Despite this, there are still hopes that the PBoC will announce more stimulus. So, that's also something that supports the upside in the NZD/USD.

Recently, the NDRC has announced that it will be taking measures to support the economy. They are confident about achieving the economic growth plans for the year 2024. Although this was optimistic, investors remain unimpressed as there is no new stimulus package announced.

For the rest of the day, the US economic calendar remains empty, besides the Fed Harker speech. Other than that, the NZD/USD trading direction will remain dependent on the technical analysis.

But given the close proximity of NZD/USD to its monthly peak, the path of least resistance is towards the downside.

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