New Zealand Dollar slides toward its range floor as US yields climb
The bottom of NZD/USD's range since April is about 0.5600, and the pair is back in the lower part of it. It is trading just under 0.5700, its lowest since early July, which is about where it was before the Reserve Bank of New Zealand (RBNZ) began raising rates on July 8.
The New Zealand Dollar (NZD) has been sliding towards its range floor, currently trading just under 0.5700, its lowest since early July. This decline coincides with a rise in US two-year government bond yields, which hit around 4.9% due to strong business surveys. On the other hand, the Reserve Bank of New Zealand (RBNZ) is expected to maintain its current interest rate of 2.75% at its October 28 decision, with a possible rise to 3.00% in December.
Meanwhile, the US Federal Reserve is also expected to decide on their rate change on October 28. RBNZ Governor Breman has warned that near-term inflation could exceed the bank's forecast if crude oil prices remain high. China is New Zealand's largest export market, and a meeting between Chinese President Xi and US President Trump is expected to be more ceremonial than trade-focused.
NZD's support level is currently just above 0.5650, marking the lowest point in the range since early July. Traders see a long bias from this area, with 0.5700 and 0.5750 as next objectives. A drop below 0.5600 would indicate a broken range and invalidate the long bias.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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