Anna 
The New Zealand Dollar (NZD) is facing continued downward pressure against the US Dollar (USD), marking the fourth consecutive day of losses. During early European trading on Thursday, NZD/USD was observed at approximately 0.6120. The USD’s retreat from a recent five-week high of 103.69, primarily driven by subdued U.S. Treasury yields, contributed to the Kiwi’s decline.
At present, the 2-year and 10-year Treasury yields stand at 4.34% and 4.09%, respectively. Despite robust retail sales data, there is speculation of a Federal Reserve rate cut in March, reinforcing the USD’s strength and consequently weakening NZD/USD.
International Monetary Fund (IMF) First Deputy Managing Director Gita Gopinath weighed in on inflation and central banks’ potential rate cuts. Gopinath emphasized the need for caution, suggesting that rate cuts are more likely in the second half of the year based on current data.
