FX.co ★ New Zealand Dollar Gains Ground

The New Zealand dollar experienced an uptick, reaching approximately $0.595 on Friday. This marks a recovery from a more than three-week low recorded in the prior session, as the US dollar faced renewed selling pressure. The US currency softened after climbing to a three-week high on Thursday, buoyed by unexpectedly strong US economic data indicating resilience in the economy, despite persistent concerns about the impact of tariffs implemented during President Donald Trump’s administration. Domestically, investors are shifting their attention to New Zealand's forthcoming second-quarter inflation data, set for release next week. Expectations are for an annual increase of 2.8%, up from 2.5%, primarily driven by rising food and electricity prices. However, core inflation is anticipated to remain subdued, which could provide the Reserve Bank of New Zealand with the leeway to consider a rate cut at its meeting in August. Despite Friday’s rebound, the New Zealand dollar (nicknamed the kiwi) remains down by 0.8% for the week, potentially marking its second consecutive weekly decline.