The New Zealand dollar is falling for the fifth trading day in a row, after the price correction is completed. USD is receiving support due to the tightening of monetary policy in the United States and expectations of a further increase in the rate. Risk sentiment is declining, but the New Zealand currency is benefiting from higher food prices.
In the near future, all investors' attention will be focused on the Fed rate, which may soon be raised at the meeting on June 15. In the absence of other macroeconomic events, this is the driver for most of the rates with USD. Of course, the volatility next week will be higher, because in addition to the Fed meeting, the GDP of New Zealand is published, as well as the producer price index and sales volumes in the United States. However, this does not mean that it's necessary to wait for the next week - you can earn on the downward movement of NZD/USD today. Right now, most technical analysis tools are indicating a strong SELL signal.
If it were not for high inflation, we could say that the US economy is on the rise, which is confirmed by the latest unemployment data. This stimulates the growth of the rate, but for the United States, the low cost of loans has always been a key factor, the basis for the development of business and the lives of Americans. Whether the US economy has enough margin of safety to cope with a high rate - we will find out in the future, but today we continue to open new deals with Superforex, selling the New Zealand dollar and buying the USD.
