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NZD/USD weakens as RBNZ’s inflation report suggests an economic slowdown. Kiwi’s Business Services Index fell from the previous reading of 50.7 to 48.9. Downbeat Chinese inflation could impact the Kiwi Dollar. US-China Presidential meeting is scheduled for Wednesday during the Asia-Pacific Economic Cooperation summit in San Francisco. NZD/USD is caught in a losing streak, stretching for the sixth consecutive session. The pessimistic global economic outlook casts a shadow over the NZD/USD pair. The spot price trades lower around 0.5890 during the Asian hours on Monday. The inflation report by the Reserve Bank of New Zealand (RBNZ) contributed to the weakening of the NZD/USD pair as New Zealand is a significant exporter of commodities. The report suggests a prevailing sentiment pointing toward an expected decrease in prices, possibly linked to an economic slowdown and diminished demand for goods and services. It seems like the anticipation is setting the stage for a shift in the economic landscape. The Kiwi’s Business NZ PSI for October paints a picture of the Services Index, which took a dip, falling from the previous reading of 50.7 to 48.9. This data might add to the strain on the Kiwi Dollar (NZD), suggesting it’s facing additional challenges. Chinese inflation recorded a yearly decline in October might dampen the outlook for global growth. This directly impacts the New Zealand Dollar (NZD), given its role as a major commodity exporter to China. Market participants await the upcoming US-China Presidential meeting. Scheduled for Wednesday during the Asia-Pacific Economic Cooperation summit in San Francisco, this marks the first in-person meeting between President Biden and President Xi in a year. The agenda is extensive, covering global issues from the Israel-Hamas conflict to Russia’s invasion of Ukraine, fentanyl production, and discussions around artificial intelligence. US Dollar Index (DXY) moves sideways without a direction despite…

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Filed under: News - @ November 13, 2023 5:04 am