- NZD/USD gains traction around 0.6224 amid the USD weakness.
- New Zealand’s Business NZ PSI climbed to 51.2 in November from 48.9 in the previous reading.
- Fed’s Goolsbee said on Sunday that it’s premature to declare victory over the inflation battle.
- Market players will monitor New Zealand’s Trade Balance, and US housing data, due on Tuesday.
The NZD/USD pair trades in positive territory for the sixth consecutive day during the early Asian session on Monday. The pair posts the highest level in months due to the US dollar weakness. NZD/USD currently trades near 0.6224, gaining 0.20% on the day.
The latest data from Business NZ on Monday showed that New Zealand’s Business NZ Performance of Services Index (PSI) grew into expansion territory, climbing to 51.2 in November from 48.9 in the previous reading. Additionally, the New Zealand Westpac-McDermott Miller Consumer Confidence Index in the fourth quarter (Q4) 2023 rose to 88.9, the highest in two years. This, in turn, boosts the New Zealand Dollar (NZD) and acts as a tailwind for the NZD/USD.
On the other hand, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said on Sunday that it’s premature to declare victory over the inflation battle, and the decisions on rate cuts will depend on economic data. Furthermore, Atlanta Fed President Raphael Bostic said the Fed can begin cutting the interest rate in the third quarter of 2024 if inflation falls as expected.
New Zealand will release Trade Data and the NZ Business Confidence survey on Tuesday. Also, the US housing data, including Building Permits and Housing Starts will be released on Tuesday. Traders will take cues from these data and find trading opportunities around the NZD/USD pair.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Further range bound should not be ruled out
AUD/USD managed to regain the smile and challenged the key 0.6500 hurdle on the back of the knee-jerk in the US Dollar and ahead of key data releases in Australia and the US labour market.
EUR/USD maintains the bearish tone
Despite Tuesday’s acceptable advance, EUR/USD is expected to remain under the microscope in light of political effervescence in France and upcoming key results in US fundamentals along with Chair Powell’s speech.
Gold keeps struggling for direction
Following Monday's retreat, Gold stabilizes and trades in a narrow band below $2,650. The benchmark 10-year US Treasury bond yield stays flat near 4.2% ahead of Fedspeak, making it difficult for XAU/USD to gather directional momentum.
Ethereum Price Forecast: Investors purchased $1.2 billion of ETH as key pattern suggest rally toward $4,868
Ethereum (ETH) is down 1% on Tuesday despite heavy accumulation across spot exchanges and investment products. The number one altcoin could rally to tackle its all-time high resistance of $4,868 if it maintains a rounded bottom patern and overcomes a key trendline resistance.
The fall of Barnier’s government would be bad news for the French economy
This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.