FX.co ★ New Zealand Dollar Hovers Near 3-Week Lows

On Wednesday, the New Zealand dollar hovered around $0.594, approaching its lowest point in over three weeks, as it was adversely affected by a robust US dollar. The US currency extended its upward trajectory after June saw an uptick in consumer inflation, leading traders to scale back their expectations of forthcoming Federal Reserve rate cuts. The New Zealand dollar also underperformed despite China, New Zealand's primary trading partner, reporting stronger-than-anticipated GDP growth in the second quarter. Domestically, the Reserve Bank of New Zealand maintained its official cash rate at 3.25% last week, aligning with market expectations, but continued to hint at potential future rate reductions. Earlier this week, figures indicated a lackluster performance in both the manufacturing and services sectors.