NZDUSD price fluctuations appear to have started a bullish sentiment journey since the beginning of the first week of August. NZDUSD's bullish sentiment appears unstoppable despite weaker New Zealand economic data. New Zealand retail sales showed actual data -1.2% lower than expected -1.0%, even much lower than the previous revision of 0.4%.
It seems that New Zealand's weak economic data was offset by Powell's dovish speech. In his Jackson Hole speech, Powell stated that the size and timing of interest rate cuts would depend on data, adopting a stance like the European Central Bank (ECB). He added that he believes inflation is on a sustainable path to return to 2% and inflation risks have reduced.
According to CME Group's FedWatch tool, 63.5% of investors believe the Fed will cut interest rates by 0.25%, and 36.5% believe it will cut by 0.50%.
The RBNZ interest rate is now 5.25%, this central bank has cut the previous interest rate to 5.50%, thus further suppressing the performance of the NZDUSD, which is also called KIWI by traders.
Today's economic calendar schedule does not show any high-impact news data, but some that may be of concern is US Durable Goods Orders data.
It seems that New Zealand's weak economic data was offset by Powell's dovish speech. In his Jackson Hole speech, Powell stated that the size and timing of interest rate cuts would depend on data, adopting a stance like the European Central Bank (ECB). He added that he believes inflation is on a sustainable path to return to 2% and inflation risks have reduced.
According to CME Group's FedWatch tool, 63.5% of investors believe the Fed will cut interest rates by 0.25%, and 36.5% believe it will cut by 0.50%.
The RBNZ interest rate is now 5.25%, this central bank has cut the previous interest rate to 5.50%, thus further suppressing the performance of the NZDUSD, which is also called KIWI by traders.
Today's economic calendar schedule does not show any high-impact news data, but some that may be of concern is US Durable Goods Orders data.
