NZ Dollar Lower As Treasury Warns Of Recession In 2023
14 December 2022 - 07:18PM
RTTF2
The NZ dollar fell against its major counterparts in the
European session on Wednesday, as New Zealand's Treasury predicted
a recession in late 2023.
In the Half Year Economic and Fiscal Update, Treasury said that
the economy will contract in the second, third and fourth quarters
of 2023.
Finance Minister Grant Robertson said that the economy is
forecast to contract by 0.8 percent in the 2023 calendar year.
Caution prevailed ahead of the Federal Reserve's monetary policy
announcement, due later in the day.
Although the Fed is expected to raise rates by 50 basis points,
investors fear the Fed would hint at a higher peak in interest
rates.
The kiwi remained lower against the greenback, with the pair
trading at 0.6436. The next possible support for the currency is
seen around the 0.62 level.
The AUD/NZD pair firmed to 1.0664, its highest level since
December 2. Next key support for the kiwi is seen around the 1.08
level.
The kiwi was down against the euro and the yen, at 5-day lows of
1.6558 and 86.78, respectively. The kiwi is seen finding support
around 1.68 against the euro and 85.00 against the yen.
Looking ahead, U.S. export and import prices for November are
scheduled for release in the New York session.
At 2:00 pm ET, the Fed announces its decision on interest rate.
Economists widely expect the Fed to raise rates by 50 basis points
to a range of 4.25 percent to 4.50 percent.
AUD vs NZD (FX:AUDNZD)
Forex Chart
From Feb 2024 to Mar 2024
AUD vs NZD (FX:AUDNZD)
Forex Chart
From Mar 2023 to Mar 2024