Ella 
In Asia on Monday, NZD/USD broke two consecutive gains. Investors await the Reserve Bank of New Zealand’s monetary policy meeting on Wednesday, where the Reserve Bank of New Zealand is likely to keep the official cash rate (OCR) unchanged at 5.50%. NZD/USD is currently trading around 0.6063, down 0.38% on the day.
Given that inflation has stabilized but has not fallen far enough, the market expects the Reserve Bank of New Zealand to keep interest rates unchanged at 5.50% in November. On Friday, New Zealand’s third-quarter retail sales fell 0% quarter-on-quarter, compared with -0.9% in the previous quarter and better than -0.8% in expectations. In addition, the retail sales rate excluding automobiles during the same period was 1.0% quarterly, compared with -1.6% in the previous period, which was higher than -1.5% in the forecast period.
In addition, expectations that China will introduce a stimulus plan to support the real estate industry also increase investor confidence. This positive development is likely to boost the Chinese proxy currency NZD/USD and act as a tailwind for NZD/USD.
On the other hand, the US S&P PMI fell to 49.4 from 50.0, below expectations of 49.8, while the services PMI rose to 50.8 from 50.6 last month, above expectations of 50.4. Finally, the Composite PMI remained steady at 50.7 in November.
Market participants will be watching the Reserve Bank of New Zealand’s interest rate decision on Wednesday. In addition, the annualized value of U.S. third-quarter gross domestic product (GDP) and personal consumption expenditures (PCE) inflation indicators will be released on Wednesday and Thursday respectively. Traders will look for NZD/USD trading opportunities from this data.
