NZD/USD steadies as traders expect a 25 basis point rate cut by the US Fed on Wednesday. CME FedWatch tool suggests almost fully pricing in a quarter basis point cut at the Fed's December meeting. Traders await New Zealand’s Gross Domestic Product GDP data for Q3 due on Thursday. NZD/USD holds ground as traders are bracing a potential interest rate cut by the US Federal Reserve on Wednesday, with attention largely focused on the Fed's projections for 2025.
Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency.