Interest.co.nz on Nostr: Kiwi downside pressure remains as recent data signals sluggish growth. US dollar ...
Kiwi downside pressure remains as recent data signals sluggish growth. US dollar downturn expected once Fed commences easing, but may not play out
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The New Zealand dollar is under pressure due to recent data indicating sluggish growth. The US dollar is expected to decline once the Federal Reserve starts easing, but this may not happen as anticipated. The US economy is performing well compared to other economies, including New Zealand's, which contracted in the last quarter. Despite the softening growth backdrop, domestic inflation remains high, creating a stagflation headache for the Reserve Bank of New Zealand. The Kiwi is likely to continue underperforming the dollar and may fall another 3-4% from current levels. The base case is that the dollar downturn will begin when the Fed delivers its first rate cut, but if consumer price data for March shows high inflation, rate cuts may be delayed. A light economic calendar is expected for the day ahead, and the Kiwi is likely to remain around 60 US cents.
#NewZealandDollar #UsDollar #FederalReserve #EconomicGrowth #Inflation #ExchangeRates
https://www.interest.co.nz/currencies/126999/kiwi-downside-pressure-remains-recent-data-signals-sluggish-growth-us-dollar
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The New Zealand dollar is under pressure due to recent data indicating sluggish growth. The US dollar is expected to decline once the Federal Reserve starts easing, but this may not happen as anticipated. The US economy is performing well compared to other economies, including New Zealand's, which contracted in the last quarter. Despite the softening growth backdrop, domestic inflation remains high, creating a stagflation headache for the Reserve Bank of New Zealand. The Kiwi is likely to continue underperforming the dollar and may fall another 3-4% from current levels. The base case is that the dollar downturn will begin when the Fed delivers its first rate cut, but if consumer price data for March shows high inflation, rate cuts may be delayed. A light economic calendar is expected for the day ahead, and the Kiwi is likely to remain around 60 US cents.
#NewZealandDollar #UsDollar #FederalReserve #EconomicGrowth #Inflation #ExchangeRates
https://www.interest.co.nz/currencies/126999/kiwi-downside-pressure-remains-recent-data-signals-sluggish-growth-us-dollar