NZD Dips Ahead Of Key Economic Announcements
London: 13 December 2023 (TraderMade): The New Zealand dollar (NZD) is trading lower in anticipation of two significant economic releases: the US Federal Open Market Committee (FOMC) meeting and the New Zealand Gross Domestic Product (GDP) report.
The NZDUSD pair (At about 02:56 PM GMT) declined by 0.34% to 0.61128 compared to Tuesday Close.
US inflation retreats, the market awaits the Fed's next move
US inflation dipped in October as expected, with headline CPI reaching 3.1% year-on-year, down from 3.2% in September. This did little to shift market expectations, although it dampened enthusiasm for potential rate cuts.
Core CPI, a measure of underlying inflation, remained unchanged at 4.0%. While gasoline prices helped pull down inflation, price increases across various goods and services suggest that inflationary pressures persist.
Eyes on Fed: Pause likely, but Powell's words are critical. A hawkish tone could dampen rate cut hopes, impacting markets.
New Zealand GDP braces for slowdown
On Thursday, New Zealand will release its Q3 GDP data, with analysts forecasting a sluggish 0.2% quarterly growth, significantly lower than Q2's 0.9% expansion. The annualized growth rate is expected to reach 0.5%, down from 1.8% in the previous quarter. Any deviation from these estimates could significantly impact the NZD's trajectory.
Stay tuned for further updates and market reactions following these key economic announcements. Get NZDUSD Live Rates to make informed decisions.
