NZD/USD’s revesal from 0.5680 high extends to 0.5550 area
- New Zealand’s dollar dives from 0.5680 high to 0.5550 area.
- The kiwi approaches long-term lows at 0.5475.
- The US dollar appreciates on expectations of another 0.75% FED rate hike.
The New Zealand dollar is going through a strong reversal on Friday, weighed by the overall USD strength. The kiwi turned down from session highs near 0.5700 to 0.5550 so far, approaching the 2020 low at 0.5475.
The kiwi plunges on US dollar strength
The greenback is rallying across the board on Friday, paring losses seen earlier this week, with investors anticipating the fourth consecutive 75 basis points rate hike in November. The higher-than-expected US inflation data seen on Thursday has offered additional reasons for the bank to maintain its aggressive monetary tightening cycle.
Beyond that, investors concerns about an upcoming global recession have also favoured the US dollar on the back of its safe-haven status.
In the macroeconomic docket, New Zealand’s Business NZ PMI data showed a larger-than-expected deceleration in September. Business activity slowed down to 52 from 52.5 in August, against expectations of a 52.5 reading.