FX.co ★ New Zealand Dollar Gains for 3rd Day

The New Zealand dollar climbed to approximately $0.602 on Wednesday, achieving its third straight session of gains. This uptick was bolstered by a generally weaker US dollar and positive sentiment surrounding a precarious ceasefire between Israel and Iran. Both nations indicated a halt, at least temporarily, to their aerial conflict following President Donald Trump's admonishment for breaching a previously announced truce. Concurrently, US Federal Reserve Chair Jerome Powell, during his semi-annual testimony before Congress on Tuesday, maintained a cautious approach, emphasizing that the Fed is not in a rush to reduce interest rates. Domestically, recent data revealed a sharp expansion in New Zealand's trade surplus for May compared to the previous year, driven by export growth outpacing imports. This comes on the heels of the previous week's release of better-than-anticipated Q1 GDP figures, which highlight a reinforcing economic recovery. These developments strengthen the argument that the Reserve Bank is approaching the conclusion of its easing cycle.