NZD/USD drops to near 0.5800 due to the dovish mood surrounding the RBNZ policy outlook

• NZD/USD receives downward pressure as the RBNZ is highly expected to deliver a 50 basis point rate cut in November.
• The US Dollar Index rose to a fresh yearly high of 107.20 during the European session on Friday.
• Traders await the US S&P Global PMI data scheduled to be released in the North American session.

NZD/USD extends its losing streak for the third consecutive day, trading around 0.5830 during the European hours on Friday. This downside of the NZD/USD pair is attributed to growing expectations that the Reserve Bank of New Zealand (RBNZ) could deliver a bumper interest rate cut next week.

Markets are fully anticipating a 50 basis point cut in the RBNZ's cash rate to 4.25% at next week's monetary policy meeting, aligning with the reduction seen in October. Additionally, there is a 25% probability priced in for a more aggressive 75-basis-point cut.

On Thursday, New Zealand's Treasury Chief Economic Adviser, Dominick Stephens, indicated that economic and fiscal forecasts are likely to be revised downward, citing a prolonged slowdown in productivity.

Traders await the US S&P Global PMI data, set to be released later in the North American session. The US Manufacturing PMI for November is forecast to increase to 48.8 from 48.5, while the Services PMI is expected to rise to 55.3 from 55.0.

The US Dollar Index (DXY), which measures the USD against a basket of major currencies, rises to a fresh yearly high of 107.20 during the European session on Friday. The US Dollar gains strength following the release of last week's Initial Jobless Claims data.

US Jobless Claims dropped to 213,000 for the week ending November 15, down from a revised 219,000 (previously 217,000) in the prior week and below the forecast of 220,000. This development has sparked speculation that the pace of Federal Reserve rate cuts could slow.