Here’s what you need to know on Wednesday, November 26:
The New Zealand Dollar (NZD) and Australian Dollar (AUD) gather strength on Wednesday as markets react to Reserve Bank of New Zealand (RBNZ) policy decisions and inflation data from Australia. In the second half of the day, September durable goods orders and weekly initial jobless claims data will be featured in the US economic calendar before markets take a break for Thanksgiving.
US dollar price this week
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed this week. The US dollar was weakest against the New Zealand dollar.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.59% | -0.57% | -0.16% | -0.21% | -0.74% | -1.19% | -0.38% | |
| euro | 0.59% | 0.01% | 0.45% | 0.38% | -0.16% | -0.61% | 0.20% | |
| GBP | 0.57% | -0.01% | 0.41% | 0.38% | -0.18% | -0.61% | 0.19% | |
| JPY | 0.16% | -0.45% | -0.41% | -0.07% | -0.66% | -1.18% | -0.25% | |
| Canadian | 0.21% | -0.38% | -0.38% | 0.07% | -0.54% | -0.99% | -0.18% | |
| Australian dollar | 0.74% | 0.16% | 0.18% | 0.66% | 0.54% | -0.44% | 0.38% | |
| New Zealand dollar | 1.19% | 0.61% | 0.61% | 1.18% | 0.99% | 0.44% | 0.81% | |
| Swiss franc | 0.38% | -0.20% | -0.19% | 0.25% | 0.18% | -0.38% | -0.81% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The Reserve Bank of New Zealand announced at the start of the Asian session that it had cut interest rates by 25 basis points to 2.25%, as was widely expected. Updated economic forecasts showed the RBNZ saw the official interest rate at 2.25% in March 2026 and 2.28% in December 2026. In the press conference following the meeting, RBNZ Governor Christian Hoxby indicated they felt the risks were balanced and reiterated that their central forecast was based on the interest rate remaining unchanged until 2026. NZD/USD The pair has gained upward momentum and was last seen trading just below 0.5700, up more than 1% on the day.
Data from Australia showed that annual inflation, measured by the change in the consumer price index, rose to 3.8% in October from 3.5% in September. This reading was higher than market expectations of 3.6%. Australian Dollar/US Dollar The pair benefited from hot inflation data and was last seen rising more than 0.5% on the day at 0.6505.
the US Dollar (USD) It remains under modest downward pressure in the European morning on Wednesday, with the dollar index retreating towards 99.50 after losing about 0.4% on Tuesday. The Automatic Data Processing (ADP) weekly report on Tuesday showed that private sector employers lost an average of 13,500 jobs per week during the four weeks ending November 8, highlighting deteriorating conditions in the labor market. Meanwhile, Wall Street’s major indexes continued to rise in risk on rising expectations for a Fed rate cut and recorded strong gains on Tuesday. Early Wednesday, US stock index futures rose between 0.3% and 0.5%.
GBP/USD Investors benefited from renewed US dollar weakness and rose nearly 0.5% on Tuesday. The pair continues to rise towards the 1.3200 level at the beginning of the European session on Wednesday. Later the same day, UK Chancellor of the Exchequer Rachel Reeves will present the Autumn Budget.
EUR/USD It builds on Tuesday’s gains and advances towards 1.1600 on Wednesday, trading at a new weekly high.
USD/JPY Finds support after Tuesday’s decline and holds on to small daily gains above 156.00 in European morning.
gold The pair failed to make a decisive move in either direction on Tuesday and closed the day virtually unchanged. The XAU/USD pair is holding steady and trading slightly higher on the day, at around $4,150.
Central banks questions and answers
Central banks have the main task of ensuring that prices in a country or region are stable. Economies constantly experience inflation or deflation when the prices of certain goods and services fluctuate. A continuous rise in prices for the same goods means inflation, and a continuous fall in prices for the same goods means deflation. It is the responsibility of the central bank to maintain demand by adjusting the interest rate. For the largest central banks such as the US Federal Reserve (Fed), the European Central Bank (ECB), or the Bank of England (BoE), the mandate is to keep inflation near 2%.
The central bank has one important tool at its disposal to raise or lower inflation, and that is by adjusting its benchmark interest rate, known as the cash rate. At the moments announced in advance, the central bank will issue a statement on its interest rate and provide additional reasons as to why it will remain or change (lower or raise). Local banks will adjust their savings and lending rates accordingly, which will make it harder or easier for people to earn their savings or for companies to get loans and make investments in their businesses. When a central bank raises interest rates significantly, this is called monetary tightening. When the benchmark interest rate is lowered, it is called monetary easing.
The central bank is often politically independent. Members of the central bank’s policy board go through a series of committees and hearings before being appointed to a policy board seat. Each member of this board often has a certain conviction about how the central bank should control inflation and subsequent monetary policy. Members who want very loose monetary policy, with low interest rates and cheap lending, to boost the economy significantly while being content to see inflation just above 2%, are called “doves.” Members who want to see higher interest rates to reward savings and want to keep inflation down at all times are called “hawks” and will not rest until inflation reaches 2% or just below.
Typically, there is a chair or chair who presides over each meeting, needs to create consensus among the hawks or doves, and has the final say when it comes to dividing the votes to avoid a 50-50 tie on whether the current policy should be amended. The Chairman will often make live follow-up speeches, communicating the current cash position and outlook. The central bank will try to push its monetary policy forward without causing violent fluctuations in interest rates, stocks, or its currency. All central bank members will direct their stance towards the markets before the policy meeting. A few days before the policy meeting and until the new policy is announced, members are prohibited from speaking publicly. This is called a blackout period.
