The NZD/USD pair climbs to near 0. 5665 during the early Asian session on Wednesday. The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) following the Reserve Bank of New Zealand (RBNZ) interest rate decision. As widely expected, the RBNZ decided to cut its Official Cash Rate (OCR) by 25 basis points (bps) to 2. 25% at its November meeting on Wednesday. The Kiwi attracts some buyers in an immediate reaction to the RBNZ rate decision. The move came amid signs of slowing economic growth, including a soft housing market. Traders will closely monitor the press conference at 2. 00 GMT. Policymakers were expected to provide some insight into the rate decision in between. Softer-than-expected US economic reports released on Tuesday have weighed on the Greenback. Data released by the US Census Bureau showed that Retail Sales in the United States (US) rose by 0. 2% MoM in September, versus the 0. 6% increase prior. This figure came in below the market’s expectation of 0. 4%. Meanwhile, private employers shed an average of 13, 500 jobs for the four weeks ending November 8, the Automatic Data Processing (ADP) showed on Tuesday. This reading indicated further signs of a weakening US labor market, which boosts the expectation for the US Federal Reserve (Fed) rate cut in December and drags the US Dollar lower. Traders are now pricing in nearly an 85% probability of a quarter percentage point cut from the Fed in December, up from 80% earlier this week, according to the CME FedWatch tool. The US Durable Goods Orders, the weekly Initial Jobless Claims, the Chicago PMI, and the Fed Beige Book will be published later on Wednesday. If the reports show a stronger-than-expected outcome, this could lift the Greenback and act as a headwind for the pair.
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New Zealand Dollar jumps above 0.5650 as RBNZ cuts OCR to 2.25%
