NZD/USD Attracts Buyers Above 0.5550 Amid U.S. Recession Fears and RBNZ Rate Decision in Focus
NZD/USD Attracts Buyers Above 0.5550 Amid U.S. Recession Fears and RBNZ Rate Decision in Focus
The NZD/USD pair has attracted buyers, trading around 0.5580 during the Asian trading hours on Tuesday.
President Donald Trump's recent tariffs on trade partners have raised concerns about a potential U.S. recession, exerting downward pressure on the U.S. Dollar (USD).
The market is increasingly apprehensive about the economic impact of these tariffs, contributing to USD weakness and influencing currency pairs like NZD/USD.
The RBNZ is scheduled to announce its monetary policy decision on April 9, 2025.
Economists anticipate a 25 basis point reduction in the official cash rate (OCR) to 3.50%, marking the fifth consecutive rate cut aimed at supporting economic recovery.
Nearly 90% of economists predict additional rate cuts, with expectations of another 25 basis point reduction in May.
New Zealand's economy officially entered a recession in the third quarter of 2024, with a 1.0% GDP decline following a 1.1% fall in the previous quarter.
Despite recessionary pressures, inflation remains within the RBNZ's target range, influencing the central bank's rate decisions.
