The New Zealand dollar fell in Asian trade on Tuesday against a basket of major rivals, giving up an eight-month high against the dollar on profit-taking.
The odds of a New Zealand rate cut in July took a dip recently, with investors now awaiting important New Zealand data on inflation, unemployment, and growth to gather more clues.
The Price
The NZD/USD price fell 0.4% today to $0.6011, with an October 2024 high at $0.6055.
Kiwi closed 1.2%5 higher on the dollar on Monday, marking the third profit in four sessions on renewed concerns about US financial assets.
US Dollar
The dollar index rose 0.3% on Tuesday away from a six-week low at 99.58 against a basket of major rivals.
The dollar’s gains come as the Trump administration seeks to calm recent jitters with China and restore business confidence in the US.
Now investors await important US labor data, including job opportunities later today, and the crucial payrolls report on Friday.
New Zealand Rates
Following the Reserve Bank of New Zealand’s policy meeting in May, the odds of a 0.25% rate cut at the July meeting fell below 50%.
Now the futures market expected New Zealand interest rates to settle at 3% by the end of the year, up from 2.75% in previous forecasts.
