The rates continue within the downward trend in favor of the USD. Perhaps today we would see a completely opposite situation, but the New Zealand dollar is weakened by the economic slowdown in China, where according to recent reports, business activity remains below 50 pips, and the trade surplus fell in October. However, the last few weeks have been very positive for the NZD on the back of a weaker US dollar and hawkish signals from the RBNZ regarding their willingness to raise rates in the future.
As for the American currency, its prospects are doubtful. The prevailing view among investors is that the rate will not only decrease in 2024, but may also be reduced, given the decline in inflation in the United States. Macroeconomic reports have been generally positive for the USD, but this is not enough without stimulus from the Fed.
Most macroeconomic reports indicate the effectiveness of the deals to Buy, but we also note that the NZD is rising for the sixth trading day in a row, and the Stochastic oscillator has reached the overbought zone. Therefore, in the near future we expect a pause in the upward movement, without excluding a complete resumption of the downward trend, and the price correction may be close to completion. In this regard, we decided to open the deals today.
