Nzdusd Trades On Improved Risk

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Nzdusd Trades On Improved Risk

Nzd/Usd Trades Near 0.6000 On Improved Risk Sentiment

NZD/USD is now trading near the 0.6000 resistance on Tuesday amid an improved risk sentiment. The strength in the NZD comes as the market mood has turned positive, and the US elections are taking center stage.

Even now, the outcome of the US elections remains uncertain as the polls show tough competition between the parties. However, it seems that the NZD is enjoying the show at the expense of the US Dollar.

S&Amp;Amp;P 500 Moves Higher On Demand

The S&P 500 appears to be in the green and even opened the session on a good note. It shows that the investors demand for the riskier assets such as stock indexes is still pretty decent. A quick look at the DXY shows that it is in red and is trading around 103.70.

If Trump wins the election, it would be unfavorable for New Zealand's economy. After all, New Zealand is a major trading partner of China, and any trade restrictions on China will also impact the NZD's economy.

Trump has made it clear that he will impose a 60% import tariff on China. Now, that's a clear sign that a Trump win will lead to escalation between the USA and China.

For now, the Kiwi Dollar is enjoying the risk-on mood due to the US elections. However, the appeal for the NZD is still weak as the RBNZ is expected to cut rates by 50 bps once again. The upcoming RBNZ meeting is scheduled to he held on 27th November.

Overall, it seems that New Zealand's economy needs a fresh economic stimulus to prevent an economic slowdown. At the same time, it is essential to revive the labor demand in the country.

The unemployment rate is also expected to jump from 4.6% to around 5.0%. If that happens, it would signal that a stimulus package is now a necessity and can no longer be delayed.

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