The NZD/USD pair is gaining strength and is approaching 0.5750 during the early European session on Wednesday.
Positive Chinese services PMI data and a less accommodative-than-expected position from the RBNZ help boost the New Zealand Dollar.
The US ADP Employment Change and ISM Services PMI reports will be the main focus later on Wednesday.
The NZD/USD pair draws some buyers near 0.5750 early in the European session on Wednesday. Positive Chinese economic data is helping the Kiwi, which is linked to China, hold up against the US Dollar. Later in the day, attention will turn to the release of the US ADP Employment Change and the ISM Services Purchasing Managers Index (PMI) data.
China's Services PMI dropped to 52.1 in November, down from 52.6 in the previous month, as reported by RatingDog on Wednesday. This result was better than the expected 52.0. The positive economic numbers from China might help support the New Zealand Dollar (NZD), since China is a key trading partner for New Zealand.
The Reserve Bank of New Zealand (RBNZ) cut its Official Cash Rate (OCR) by 25 basis points, bringing it down to 2.25%, as expected. The central bank said future interest rate decisions will depend on how the economy and inflation develop. Analysts think the period of rate cuts is probably over for now. This could help the New Zealand dollar rise.
Traders are placing more bets that the Federal Reserve will lower interest rates this month because of weaker economic data from the US, a slower job market, and more cautious statements from Fed officials. Right now, traders are predicting an 89% chance of a rate cut after the Fed meets on December 9-10, which is higher than the 71% chance they thought a week ago, as shown by the CME FedWatch Tool.
Fed officials will take a break before the upcoming Fed meeting. Traders are waiting for new US economic data that could give more direction. On Wednesday, reports on the US ADP Employment Change and the ISM Services PMI may provide some clues about the labor market and the direction of US interest rates. If these reports are better than expected, they might help reduce the decline in the US dollar in the short term.
Positive Chinese services PMI data and a less accommodative-than-expected position from the RBNZ help boost the New Zealand Dollar.
The US ADP Employment Change and ISM Services PMI reports will be the main focus later on Wednesday.
The NZD/USD pair draws some buyers near 0.5750 early in the European session on Wednesday. Positive Chinese economic data is helping the Kiwi, which is linked to China, hold up against the US Dollar. Later in the day, attention will turn to the release of the US ADP Employment Change and the ISM Services Purchasing Managers Index (PMI) data.
China's Services PMI dropped to 52.1 in November, down from 52.6 in the previous month, as reported by RatingDog on Wednesday. This result was better than the expected 52.0. The positive economic numbers from China might help support the New Zealand Dollar (NZD), since China is a key trading partner for New Zealand.
The Reserve Bank of New Zealand (RBNZ) cut its Official Cash Rate (OCR) by 25 basis points, bringing it down to 2.25%, as expected. The central bank said future interest rate decisions will depend on how the economy and inflation develop. Analysts think the period of rate cuts is probably over for now. This could help the New Zealand dollar rise.
Traders are placing more bets that the Federal Reserve will lower interest rates this month because of weaker economic data from the US, a slower job market, and more cautious statements from Fed officials. Right now, traders are predicting an 89% chance of a rate cut after the Fed meets on December 9-10, which is higher than the 71% chance they thought a week ago, as shown by the CME FedWatch Tool.
Fed officials will take a break before the upcoming Fed meeting. Traders are waiting for new US economic data that could give more direction. On Wednesday, reports on the US ADP Employment Change and the ISM Services PMI may provide some clues about the labor market and the direction of US interest rates. If these reports are better than expected, they might help reduce the decline in the US dollar in the short term.
