FX.co ★ New Zealand Dollar Set for Weekly Gain

On Friday, the New Zealand dollar inched up to $0.589, marking a weekly increase as it benefited from a generally weaker US dollar. The American currency has faced renewed pressure as the market started to anticipate higher chances of a Federal Reserve rate cut next month. Moreover, ongoing concerns regarding the Federal Reserve's autonomy have affected market sentiment. Investors are keenly awaiting the release of the US PCE price index, the Federal Reserve's favored inflation indicator, expected later today, for further insights into the direction of US interest rates. Nonetheless, upward movement for the New Zealand dollar is restrained due to the Reserve Bank of New Zealand's dovish monetary policy stance. Recently, the RBNZ reduced its cash rate and indicated the possibility of further easing, aiming to reinvigorate a sluggish economy and shield it from international economic challenges. Data disclosed today emphasized domestic fragility, with consumer confidence in New Zealand plunging to a ten-month low in August, driven by deteriorating employment and wage growth. Despite this, the New Zealand dollar has risen by 0.4% for the week, although it remains essentially unchanged for the month.