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The NZD/USD pair holds gains above the round-level support of 0.5900 in Friday’s European session. The Kiwi pair strengthens as (DXY) extends its correction after diving below the key support of 106.00 and posts a fresh two-week low near 105.60. However, it managed to recover some losses but is on track to close the week with an almost 1.5% decline.The US Dollar (USD) weakens as the investors trim so-called ‘Trump Trades’ after United States (US) President-elect Donald Trump nominated Scott Bessent to fill the position of Treasury Secretary. Market participants expect Bessent to execute Trump-stated trade policies strategically and gradually with an intention to avoid a lethal trade war.Going forward, investors will focus on a slew of US employment-linked data and the ISM Manufacturing and Services data for November, which will be released next week. The array of economic data will influence market expectations for the Federal Reserve’s (Fed) monetary policy action in December.According to the CME FedWatch tool, the likelihood for the to cut interest rates by 25 basis points (bps) to 4.25%-4.50% in the December meeting is 66% while the rest supports leaving them unchanged.Meanwhile, the New Zealand Dollar (NZD) performs strongly even though market participants expect the Reserve Bank of New Zealand (RBNZ) to cut interest rates again by 50 bps in its next monetary policy meeting in February 2025 after reducing by the same margin on Wednesday.RBNZ Governor Adrian Orr kept doors for an outsize interest rate cut open but the decision will depend on economic conditions. Orr was confident about a further decline in inflationary pressures.More By This Author:USD/CAD Finds Temporary Support Below 1.4000, Canadian Q3 GDP In Focus Silver Price Forecast: XAG/USD Bounces Back Strongly On Fresh Escalation In Russia-ukraine War Pound Sterling Corrects Against USD Amid Thin Trading Volume On Thanksgiving Day
