According to the major New Zealand financial institution ANZ, the New Zealand dollar is expected to regain ground against the dollar in 2024. 

The banking institution expects the Kiwi to gain ground next year but with some vlatility amid continued uncertianty about the Reserve Bank of New Zealand's next policy moves. 

Therefore the overall picture support the kiwi as a sensitive risk market, with risk appetite expected to rebound in 2024. 

ANZ added that positive periodic outlook bodes well for high-yield currencies such as the New Zealand dollar. 

The New Zealand dollar was one of the next performing major currencies before the year's end as investment sentient rebounded on prospects of early interest rate cuts by the Federal Reserve in 2024. 

ANZ expects kiwi to peform well against its US counterpart, however the pound could prove stronger than the kiwi as the UK economy firms. 

Questions marks are still surrounding kiwi's future, depending on the next step by the RBNZ.

Investors don't expect another interest rate hike by the RBNZ, but if occured, it'll cause further volatility down the line. 

Aggressive policy tightening by the RBNZ could weigh negatively on economic performance and hurt the kiwi in the process.

New Zealand Dollar Outlook in 2024

The ANZ bank expects the New Zealand dollar \ US dollar pair to hit 0.62 by the end of March 2024, then 0.63 by the end of September. 

As for the UK pound \ Kiwi pair, the bank expects it to hit 2.1 by the end of March, and 2.13 by the end of June, then 2.10 by the end of September, and again back to 2.13 by the end of 2024. 

Gold prices rose in European trade on Wednesday, maintaining gains for the third straight session and moving in a positive zone as US 10-year treasury yields declined.

Recent bearish remarks by Fed officials bolstered the case for a US interest rate cut in March as markets now await a batch of crucial US data this week. 

Gold Prices Today

Gold prices rose 0.2% to $2,043 an ounce, with a session-low at $2,036, after closing up 0.65% on Tuesday, as the dollar lost ground. 

US Yields 

US 10-year treasury yields fell 0.6% on Wednesday, extending losses for the second session and almost hitting five-month lows at 3.887%. 

Such developments come following bearish remarks by a string of Fed officials which hinted at early interest rate cuts in March.

Fed Remarks 

Fed Atlanta President Rafael Bostic said he expects two potential interest rate cuts in the second half of next year, although he doesn't think there's an urgent need to do this currently. 

Richmond Fed President Thomas Barkin said the Fed's ability to cut interest rates will depend on the performance of the US economy.

US Rates

Following the remarks, the odds for a US interest rate cut by the Fed in March surged to 81%, and for such a cut at the May meeting surged to 98%. 

Now investors await important data on US GDP, unemployment claims, and personal spending later this week to gauge the path ahead for policies. 

The SPDR

Gold holdings at the SPDR Gold Trust fell 2.02 tonnes yesterday to a total of 877.67 tonnes. 

Sterling declined in European trade on Wednesday against a basket of major rivals, resuming losses against the dollar and becoming worst performing major currency following UK inflation data.

Such data showcased the decline of inflationary pressures on Bank of England policymakers, after consumer prices hit 26-month lows, paving the way for early BOE interest rate cuts next year. 

GBP/USD

GBP/USD fell 0.6% to 1.2656, with a session-high at 1.2736, after rising 0.7% on Tuesday, the first profit in three days as the dollar fell off four-month high at 1.2794. 

Declining Currencies

Sterling was the worst performing major currencies on Wednesday, after losing 0.6% against the dollar, and 0.5% against the euro, while dropping 0.7% against the Swiss franc, hitting a two-month low at 1.0882. 

The pound dropped 0.6% against the Canadian dollar, plumbing five-month low at 1.6880, while falling 0.7% against the Aussie to a six-month low at 1.8674. 

UK Inflation Data

Earlier data showed main UK consumer prices rose 3.9% y/y in November, the slowest such pace since 2021, below estimates of 4.3%. 

Core inflation rose 5.1%, also slowing down sharply from 5.7% in October.

Such data showcases the drop in inflationary pressures on BoE policymakers and pave the way for early interest rate cuts in the first half of the year. 

Palladium prices surged on Tuesday as the dollar lost ground against most major rivals, with optimism rising for global demand as the US economy and other major economies rebound.

The dollare index rose on Tuesday, while the yen fell after Bank of Japan to maintain its ultra-easy policies unchanged and maintained its future outlook. 

A stronger dollar weighs on metals prices as it makes they costlier to holders of other currencies. 

At the London Metals Exchange, aluminium fell 0.8% to $2265 a tonne, while nickel fell 0.2% to $16475, as zinc fell 0.1% to $2535, while lead shed 0.2% to $2054. 

At the Shanghai Exchange, alumium rose 0.4% to 18940 yuan a tonne, while zinc added 0.1%, as tin rose 0.5% to 208410. 

Recent data showed China's refined copper production surged 12.3% in November y/y.

Otherwise, the dollar index fell 0.4% as of 15:39 GMT to 102.1, with a session-low at 102.07. 

Palladium March futures surged 4.3% to $1250 an ounce away from recent lows at $1000.