NZD/USD gains ground as dovish comments from Fed officials raise speculations of rate cuts. FedChair Jerome Powellsaid that the central bank is getting back on the disinflationary path. The economic slowdown in China, a major trade partner, poses a headwind for the New Zealand Dollar. NZD/USD appreciates for the second successive session as the US Dollar struggles due to the escalated speculations of Federal Reserve reducing interest rates in 2024. The NZD/USD pair trades around 0.
Expectations that the Reserve Bank of New Zealand will cut rates earlier than projected may restrain any significant appreciation of the NZD/USD pair. Interest rates FAQs What are interest rates? Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy.