The New Zealand dollar has been a solid performer among G10 currencies as of late. However, the US dollar performed even better, leading to a big drop on the NZDUSD market over the past 4 weeks. The pair will remain in the spotlight this week, thanks to important events on the US-side as well as NZ-side. When it comes to US dollar, market is still waiting for the announcement from US President Biden on who will be the next Fed Chair. Biden is scheduled to deliver a speech on the economy and inflation tomorrow. As White House wants to announce the decision on Fed Chair ahead of Thanksgiving (this Thursday), it looks like tomorrow’s speech from Biden could include the announcement. When it comes to NZD, investors will be offered retail sales data for Q3 today in the evening (9:45 pm GMT) and a RBNZ rate decision on Wednesday (1:00 am GMT). A rate hike looks like a done deal but economists seem to be divided on the scale – 25 or 50 basis points. A 50 bp rate hike could provide a boost for NZD but a 25 bp rate hike is largely priced-in and should not be a mover.
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