RBNZ Asst Gov Silk: Manufacturing, retail, construction will start to see recovery in 2025

Comments from RBNZ Asst Governor Silk

• Residential investment, manufacturing, retail trade, construction in New Zealand will start to see more recovery in early 2025.
• Geopolitical risks pose uncertainty, can have an impact on inflation and growth.
• Restrictive policy giving confidence nondomestic inflation numbers allowing us to start to accelerate easing cycle Comments from

RBNZ chief economist Conway:

• Have not formally modelled any potential impact from Trump’s potential policies.
• Expecting 6.8% increase in NZ house prices next year
• Not expecting boom in the house prices but expecting more life

The Reserve Bank of New Zealand cut rates by 50 basis points at the start of the new trading day . Despite the cut, the NZDUSD moved sharply higher with the price currently up 1.05%.

Technically, the price is finding some resistance against its 100-bar moving average on the 4-hour chart (blue line on the chart below). The price has rotated back down toward the 38.2% retracement of the November trading range. That level comes in at 0.5889. Move below that level and we could see more downside probing once again as a run higher runs out of steam..

This article was written by Greg Michalowski at www.forexlive.com.