NZDUSD Analysis – January-12-2024

NZDUSD Analysis - January-12-2024

The NZDUSD pair has recently seen an increase to about $0.625. This rise comes after periods of instability due to the decrease in the US dollar. The drop in the US dollar is happening because many believe that the Federal Reserve will reduce interest rates multiple times this year. There’s a 70% likelihood that the US central bank will lower rates in March.

This is a bit less likely than before when the chance was nearly 90%. In New Zealand, the expectation is that the Reserve Bank will cut rates four times this year. The first cut might happen as early as May. New Zealand’s central bank leader has noted the unexpected slowdown in recent economic growth. This has led to predictions of an earlier decrease in the cash rate. In November, the cash rate remained at 5.5% in New Zealand, although there was almost a rate hike.

NZDUSD Analysis - January-12-2024

NZDUSD Analysis 4-Hour Chart