Investing.com | Editor Pollock Mondal
Published Nov 22, 2023 08:58AM ET
The New Zealand dollar gained against the US dollar today, trading near 0.6054, buoyed by a softer US dollar and a decline in US Treasury yields. The positive move for the NZD/USD pair comes as markets digest a series of economic updates and policy signals.
On Tuesday, New Zealand’s trade balance deficit narrowed to $-14.81 billion, with exports climbing to $5.40 billion and imports registering at $7.11 billion. This improved trade outlook, coupled with the People’s Bank of China’s (PBOC) commitment to bolster support for China’s real estate sector, has raised prospects for the New Zealand dollar.
Moreover, the Federal Open Market Committee (FOMC) in the United States reiterated its commitment to combating inflation. However, financial markets are beginning to anticipate a potential pause in rate hikes, with expectations of an end to increases and possible rate cuts starting from May 2024.
Traders are also bracing for key US economic data releases ahead of the Thanksgiving holiday, which could influence trading activity on Thursday. The anticipated data is expected to provide further insights into the health of the US economy and may impact currency valuations as investors seek to adjust their positions before the market break.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Written By: Investing.com
