FX.co ★ New Zealand Dollar Holds at Multi-Month Lows

On Friday, the New Zealand dollar remained stable at $0.576, marking its lowest point since April 11. This stability is attributed to the strengthening of the US dollar and increasing expectations of domestic monetary easing. The US dollar gained strength following better-than-expected economic data from the US and cautious comments from several Federal Reserve officials, leading markets to reduce the likelihood of additional rate cuts this year. Investors are now turning their attention to the upcoming release of the PCE price index later today for further insights into the Federal Reserve's interest rate trajectory. Concurrently, a series of weak economic indicators in New Zealand has prompted traders to anticipate more substantial easing by the Reserve Bank of New Zealand. Market participants have fully factored in a quarter-point rate cut to 2.75% in October, with a 30% probability of a larger half-point reduction. Meanwhile, the ANZ-Roy Morgan survey revealed that consumer confidence in New Zealand rose in September, indicating that prior rate reductions are starting to take effect. For the week, the New Zealand dollar is poised to register a loss exceeding 1%, marking its second consecutive weekly decline.