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NZD/USD Movements Dec 2023
The NZD/USD appreciated by 7.49% between November 1st and December 6th, 2023, rising from 0.5807 to 0.6165, reaching a high of 0.6223 on December 4th.
This appreciation reflects a weakening US Dollar, driven by expectations of a slower pace of interest rate hikes by the Federal Reserve.
Conversely, a hawkish stance from the RBNZ and positive economic data from New Zealand supported the NZD.
Reduced expectations for aggressive Fed rate hikes: Concerns over the global economic slowdown and market volatility led investors to temper expectations for further aggressive rate hikes by the Fed, weakening the US Dollar.
Hawkish RBNZ signals: The RBNZ maintained its hawkish stance on monetary policy, signaling potential future rate hikes to combat inflation. This stance offered support to the NZD.
Strong New Zealand economic data: Retail sales and business confidence data in November came in above expectations, indicating continued economic resilience and boosting the NZD's appeal.
Global risk appetite: A slight improvement in global risk sentiment, driven by hopes for a resolution to the war in Ukraine, also contributed to the NZD's appreciation.