Kiwi Dollar Faces Downside Pressure as Recent Data Signals Sluggish Growth
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The New Zealand dollar is facing downside pressure as recent data indicates sluggish growth. The US dollar is expected to decline once the Federal Reserve starts easing, but this may not happen as anticipated. The US economy is performing well compared to other economies, including New Zealand's, which contracted in the last quarter. Despite the softening growth backdrop, domestic inflation remains high, creating a stagflation headache for the Reserve Bank of New Zealand. The Kiwi is likely to continue underperforming the dollar and may fall another 3-4% from current levels. The base case is that the dollar downturn will begin when the Fed delivers its first rate cut, but if consumer price data for March shows high inflation, rate cuts may be delayed. A light economic calendar is expected ...
#newstr #NewZealandDollar #UsDollar #FederalReserve #EconomicGrowth #Inflation #ExchangeRates