NZD/USD falls back under 0.5600 as traders weigh New Zealand's upcoming election and diminished RBNZ rate hike expectations against a stronger US Dollar.
NZD/USD has fallen back under 0.5600, wiping out Wednesday's gains, ahead of Saturday's election with Labour at 30.7% and National at 26.4%. December RBNZ hike pricing dropped below 50% after weak Q3 jobs data, while the Fed's 3.75%-4.00% rate stays well above the RBNZ's 2.75%. The negative rate differential and election uncertainty argue for a lower pair, though Monday's China CPI and Friday's NFP could shift the USD leg.
The pair erased Wednesday's gains and sits just under 0.5600 ahead of Saturday's election, and traders have cut the odds of a December RBNZ hike to under 50% after weak third-quarter jobs figures, while US rates remain well above New Zealand's 2.75%.
Saturday's New Zealand election result, Friday's US Nonfarm Payrolls at 13:30 GMT (forecast 65K after 29K), US CPI on November 10, China CPI on Monday at 01:30 GMT, and New Zealand's manufacturing PMI on November 12.
The New Zealand Dollar has retreated below the 0.5600 level, erasing recent gains as political uncertainty mounts ahead of Saturday's general election. Market expectations for a December RBNZ rate hike have cooled to under 50% following soft third-quarter jobs data, while the persistent interest rate differential with the US Federal Reserve continues to exert downward pressure on the pair.
The pair erased Wednesday's gains and sits just under 0.5600 ahead of Saturday's election, and traders have cut the odds of a December RBNZ hike to under 50% after weak third-quarter jobs figures, while US rates remain well above New Zealand's 2.75%.
Saturday's New Zealand election result, Friday's US Nonfarm Payrolls at 13:30 GMT (forecast 65K after 29K), US CPI on November 10, China CPI on Monday at 01:30 GMT, and New Zealand's manufacturing PMI on November 12.