FX.co ★ New Zealand Dollar Edges Higher

On Wednesday, the New Zealand dollar saw a slight increase, reaching approximately $0.602; however, it remains susceptible due to rising tensions in the Middle East. The conflict between Israel and Iran, now stretching into its sixth day, has intensified global risk aversion. This situation has prompted investors to gravitate towards safe-haven assets, placing risk-sensitive currencies like the kiwi on a defensive footing. Presently, investor focus shifts to the US Federal Reserve's policy announcement scheduled for later today. Although it is largely anticipated that interest rates will remain steady, keen attention is being paid to any indications of potential rate cuts, prompted by a series of lackluster US economic data. Domestically, the spotlight is on New Zealand’s GDP report for the first quarter, scheduled for release on Thursday. Analysts are projecting a quarterly growth of 0.7%, with an expected annual contraction of 0.8%. In terms of monetary policy, the Reserve Bank of New Zealand has indicated it is approaching the conclusion of its vigorous easing strategy, with market expectations set on a final rate cut in August.