NZD/USD FALLS TO NEAR 0.5950 DUE TO SHIFTING US-CHINA TRADE SIGNALS
NZD/USD FALLS TO NEAR 0.5950 DUE TO SHIFTING US-CHINA TRADE SIGNALS
The New Zealand Dollar (NZD) has depreciated to approximately 0.5950 against the US Dollar (USD), influenced by evolving US-China trade dynamics and market sentiment.
The USD has gained strength due to market caution ahead of the upcoming US presidential election.
The US Dollar Index (DXY) is trading around 104.30, supported by higher Treasury yields.
Markets anticipate a potential 50 basis point rate cut by the Reserve Bank of New Zealand (RBNZ) in November.
China's Vice Minister of Finance announced increased countercyclical adjustments in macroeconomic policies to support economic recovery in the fourth quarter.
Any positive developments from these initiatives could boost the NZD, given China's significance as a major trading partner for New Zealand.
Investors are exercising caution ahead of the upcoming US presidential election, leading to a stronger USD.
The political uncertainty is contributing to the NZD's decline.
