FX.co ★ New Zealand Dollar Rebounds

On Thursday, the New Zealand dollar experienced a rise to approximately $0.596, following a 1.1% decline in the previous session. This recovery was bolstered by the potential easing of trade tensions between the United States and China, with key officials from both nations scheduled to meet in Switzerland on Saturday to rekindle halted trade discussions. Further support for the Kiwi came from measures implemented by China, New Zealand's primary trading partner, to stimulate economic growth amidst trade-related concerns. The New Zealand dollar also gained from a diminished U.S. dollar after the Federal Reserve decided to maintain its current interest rates, while cautioning about escalating economic hazards linked to President Trump's erratic trade policies. On the domestic front, however, the outlook for the currency remains cautious due to anticipated rate cuts from the Reserve Bank of New Zealand. Market indicators suggest a 70% probability of a 25 basis point rate reduction by the central bank later this month, with expectations of approximately three rate cuts by the end of the year.