DailyBubble News
DailyBubble News

NZD/USD jumps to 0.5900 as investors see RBNZ pivoting to rate cuts later than expected

The NZD/USD pair rose to 0.5900 as traders anticipate the RBNZ lowering key interest rates starting in November. New Zealand’s Q1 inflation increased by 0.6%, in line with expectations. Fed Chair Powell reiterated the “higher for longer” interest rates argument. The RBNZ is expected to cut rates from the November meeting instead of October. Market sentiment improved, boosting demand for the New Zealand Dollar. US Treasury yields slightly dropped, while the US Dollar Index stalled around 106.40. Fed Chair Powell stated that achieving confidence may take longer than expected, citing recent consumer price inflation data. Financial markets are expecting the Fed to start reducing interest rates from the September meeting.

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