{"id":47949,"date":"2025-11-19T05:49:16","date_gmt":"2025-11-19T05:49:16","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=32881"},"modified":"2025-11-19T05:49:16","modified_gmt":"2025-11-19T05:49:16","slug":"kiwi-weakening-as-rate-cut-approaches","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/kiwi-weakening-as-rate-cut-approaches\/","title":{"rendered":"Kiwi Weakening As Rate Cut Approaches"},"content":{"rendered":"\n<p>The New Zealand dollar slipped to around $0.563 on Wednesday, continuing its decline amid mounting expectations that the Reserve Bank of New Zealand (RBNZ) will implement another 25-basis-point rate cut next week.<\/p>\n\n\n\n<p>Markets are now fully pricing in this move, as recent economic indicators have pointed to sluggish domestic activity and easing inflationary pressures.<\/p>\n\n\n\n<p>Today\u2019s data revealed that producer prices increased less than anticipated in the third quarter, reinforcing the view that policymakers are likely to maintain an accommodative stance to support economic growth.<\/p>\n\n\n\n<p>Analysts, however, suggest that this upcoming cut may signal the end of the easing cycle, with further reductions unlikely unless global conditions deteriorate significantly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">External Factors Provide Limited Support<\/h2>\n\n\n\n<p>The external environment remains mixed. Although US President Donald Trump\u2019s recent decision to lift tariffs on over 200 food products could offer a boost to New Zealand\u2019s export sector, the move has so far had little impact on the Kiwi in the near term.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">NZ welcomes lifting of US tariffs on $1.25 billion in exports <a href=\"https:\/\/t.co\/oiv1ds4Psc\">https:\/\/t.co\/oiv1ds4Psc<\/a> <a href=\"https:\/\/t.co\/oiv1ds4Psc\">https:\/\/t.co\/oiv1ds4Psc<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1990246028528824391?ref_src=twsrc%5Etfw\">November 17, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Global risk sentiment remains subdued, while the US dollar has stayed firm ahead of key American economic releases, keeping the NZD\/USD pair under pressure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>NZD\/USD is trading around 0.5628, down 0.50%, with the daily chart showing continued bearish momentum. Prices are hovering near recent lows of approximately 0.5606, where temporary support was found earlier in the week.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2025\/11\/nzdusd-19-nov.jpeg\" alt=\"\" class=\"wp-image-32882\" \/><\/figure><\/div>\n\n\n<p>Short-term moving averages (5, 10, 30) remain aligned in a downtrend, while the MACD indicator continues to signal negative momentum below the zero line. Immediate resistance lies at 0.5670, followed by 0.5710, while key support levels are at 0.5600 and 0.5560.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\">Cautious Outlook<\/h2>\n\n\n\n<p>The Kiwi dollar is expected to remain under pressure ahead of the <a href=\"https:\/\/www.rbnz.govt.nz\/\" target=\"_blank\" rel=\"noopener\" title=\"\">RBNZ<\/a> meeting, with traders anticipating a dovish tone in the policy statement. A confirmed rate cut could push NZD\/USD below 0.5600, whereas any indication that the easing cycle is concluding might trigger a short-term rebound towards 0.5700.<\/p>\n\n\n\n<p>Looking at the broader picture, subdued global growth and soft commodity demand are likely to constrain the currency\u2019s upside through the end of the year.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarketsmy.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Open your live VT Markets account <\/a><\/strong>and<strong><a href=\"https:\/\/myaccount.vtmarketsmy.com\/login\" target=\"_blank\" rel=\"noopener\" title=\"\"> begin trading today.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The New Zealand dollar slipped to around $0.563 on Wednesday, continuing its decline amid mounting expectations that the Reserve Bank of New Zealand (RBNZ) will implement another 25-basis-point rate cut next week. Markets are now fully pricing in this move, as recent economic indicators have pointed to sluggish domestic activity and easing inflationary pressures. Today\u2019s <a href=\"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/kiwi-weakening-as-rate-cut-approaches\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":92,"featured_media":48067,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-47949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/47949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=47949"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/47949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/48067"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=47949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=47949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=47949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}