Forex Today - 09/10: RBNZ Cuts Rates By 0.50%, Kiwi Falls

2024-10-09 02:49:10

(MENAFN- Daily Forex) The Reserve Bank of New Zealand cut its Official Cash Rate by 0.50 to 4.75%, weakening the New Zealand Dollar.

The Reserve Bank of New Zealand cut its Official Cash Rate by 50 basis points to a new rate of 4.75%, as was widely expected. However, the Bank gave a more dovish statement, saying that inflation has reached the Bank's target range, clearly indicating a less restrained monetary policy. This dovish tilt pushed the Kiwi lower during the past few hours.

Sentiment continues to be hawkish on the US Dollar after the trigger event last Friday, when considerably stronger than expected US jobs and average earnings data was released. A solid majority of analysts now expects only a further 0.50% of cuts before the start of 2025 (by 78% of market participants). Both the 2-Year and the 10-Year Treasury Yields are trading or have recently traded above 4%. The US Dollar has risen today to test a key resistance level at 102.25.

Since today's Tokyo open, the strongest major currency has the Australian and US Dollars, while the weakest has been the New Zealand Dollar, putting the NZD/USD currency pair in focus.

Gold and the S&P 500 Index remain relatively near their recent record highs, despite the US Dollar upturn.

There will be a release of the minutes of the most recent FOMC meeting in the USA later today.

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