22 Nov 2024

• NZD/USD receives downward pressure as the RBNZ is highly expected to deliver a 50 basis point rate cut in November.
• The US Dollar Index rose to a fresh yearly high of 107.20 during the European session on Friday.
• Traders await the US S&P Global PMI data scheduled to be released in the North American session.
• NZD/USD continues its downward trend for the third consecutive day, trading at approximately 0.5830 during the European trading hours on Friday. The decline in the NZD/USD pair is primarily linked to increasing expectations that the Reserve Bank of New Zealand (RBNZ) may implement a significant interest rate cut in the upcoming week.
  
  Market participants are fully pricing in a 50 basis point reduction in the RBNZ's cash rate to 4.25% at next week's monetary policy meeting, consistent with the cut observed in October. Furthermore, there is a 25% likelihood of a more substantial 75-basis-point reduction being considered.
  
  On Thursday, Dominick Stephens, New Zealand's Treasury Chief Economic Adviser, suggested that economic and fiscal forecasts are likely to be adjusted downward due to a sustained slowdown in productivity.
  
  Traders are also looking forward to the release of the US S&P Global PMI data later in the North American session. The US Manufacturing PMI for November is projected to rise to 48.8 from 48.5, while the Services PMI is anticipated to increase to 55.3 from 55.0.
  
  The US Dollar Index (DXY), which gauges the USD against a selection of major currencies, has reached a new yearly high of 107.20 during the European session on Friday. The US Dollar has strengthened following the publication of last week's Initial Jobless Claims data.
  
  US Jobless Claims fell to 213,000 for the week ending November 15, down from a revised 219,000 (previously 217,000) in the previous week and below the anticipated figure of 220,000. This development has led to speculation that the pace of Federal Reserve rate cuts may decelerate.