New Zealand Dollar Trades Near 10-Week Low
The New Zealand dollar traded around $0.571 on Monday, near a ten-week low, as traders looked to a US-China summit later this week for indications on the state of relations between the world’s two largest economies. Among the key areas under discussion are an extension of the current tariff truce, which is set to expire on November 10, further tariff reductions, agricultural purchases, and AI. Any positive developments could improve global risk sentiment and support the kiwi, given that China is New Zealand’s largest trading partner. The kiwi has been under pressure since the Reserve Bank of New Zealand raised its cash rate earlier this month but signalled a more gradual pace of future tightening. Still, markets largely expect the central bank to hike rates again in October, as the recent spike in oil prices has increased upside inflation risks. Meanwhile, a firmer US dollar, supported by expectations of more Fed rate hikes, has added to downward pressure on the kiwi.
571 on Monday, near a ten-week low, as traders looked to a US-China summit later this week for indications on the state of relations between the world’s two largest economies. Among the key areas under discussion are an extension of the current tariff truce, which is set to expire on November 10, further tariff reductions, agricultural purchases, and AI. Any positive developments could improve global risk sentiment and support the kiwi, given that China is New Zealand’s largest trading partner. The kiwi has been under pressure since the Reserve Bank of New Zealand raised its cash rate earlier this month but signalled a more gradual pace of future tightening.
Still, markets largely expect the central bank to hike rates again in October, as the recent spike in oil prices has increased upside inflation risks. Meanwhile, a firmer US dollar, supported by expectations of more Fed rate hikes, has added to downward pressure on the kiwi.