Economy, Interest Rates Pressure New Zealand Dollar

The NZD USD could be forming a top as traders have shifted from demanding more risk to focusing on the New Zealand economy.

Now that the FOMC meeting is over, NZD USD traders are once again focusing on the Reserve Bank of New Zealand meeting.  Expectations of a 50 basis point interest rate cut are putting new pressure on this market.

Under normal trading conditions the New Zealand Dollar would be rallying because of increased trader demand for risky assets, but today is an example of currency traders putting more emphasis on the current economic conditions.