FX.co ★ New Zealand Dollar Rises to 1-Week High

The New Zealand dollar appreciated to $0.582 on Thursday, marking a third consecutive day of gains and reaching a one-week high. This rise occurred as the US dollar faced challenges amidst a government shutdown and disappointing private payroll figures. The shutdown presents a significant risk for the US economy, further underscored by the ADP report, which revealed a 32,000-job loss in the private sector. This unexpected decline heightens fears of a faltering labor market, prompting traders to anticipate Federal Reserve interest rate reductions within the year. Meanwhile, domestically, the New Zealand dollar remains pressured by expectations that the Reserve Bank of New Zealand may reduce its official cash rate by 25 basis points to 2.75% during its upcoming meeting. Market indicators suggest a 35% probability that the rate might be lowered even more significantly, by 50 basis points.