Kiwi Drops Further Ahead of Fed Decision
The New Zealand dollar fell further to $0.574, its lowest level in over two months, as traders prepared for a widely anticipated Federal Reserve rate hike later today, supporting the US dollar. Markets will also watch the Fed’s updated dot plot and economic projections for clues on future rate moves. Investors’ attention is also on New Zealand’s second-quarter GDP data on Thursday, with economists expecting only modest growth from the previous quarter. Market pricing currently implies another rate hike from the Reserve Bank at its October meeting, even as policymakers signaled a slower pace of rate increases. Meanwhile, RBNZ Assistant Governor Karen Silk has resigned after more than four years with the bank. Silk will participate in two more MPC meetings before departing in mid-December.
574, its lowest level in over two months, as traders prepared for a widely anticipated Federal Reserve rate hike later today, supporting the US dollar. Markets will also watch the Fed’s updated dot plot and economic projections for clues on future rate moves. Investors’ attention is also on New Zealand’s second-quarter GDP data on Thursday, with economists expecting only modest growth from the previous quarter. Market pricing currently implies another rate hike from the Reserve Bank at its October meeting, even as policymakers signaled a slower pace of rate increases.
Meanwhile, RBNZ Assistant Governor Karen Silk has resigned after more than four years with the bank. Silk will participate in two more MPC meetings before departing in mid-December.