FX.co ★ New Zealand Dollar Holds Near 1-Month High

The New Zealand dollar has maintained its position around $0.572, approaching a one-month peak, buoyed by the Reserve Bank's optimistic stance. On Wednesday, the central bank reduced its cash rate by 25 basis points to 2.25%, marking the lowest level since June 2022. This decision, however, is accompanied by indications that it might signal the conclusion of the current easing cycle, with updated forecasts suggesting only a 20% likelihood of an additional cut next year. In a statement on Thursday, RBNZ officials expressed optimism about the nation's economic resurgence. Christian Hawkesby, the Governor, highlighted early indicators suggesting economic growth in the latter half of the year, with demand appearing to stabilize. This perspective is further supported by data revealing that retail sales increased more robustly than anticipated in the third quarter, coupled with business confidence hitting an 11-year high in November. So far this week, the kiwi has appreciated by nearly 2% and is poised for its most successful week since April.