FX.co ★ New Zealand Dollar Struggles

The New Zealand dollar remained around $0.572 on Friday, closely aligning with Monday's six-month low of $0.568. This occurred against the backdrop of ongoing trade tensions between the US and China and a dovish policy stance domestically. Tensions between these two major economies resurfaced when Washington and Beijing faced off over export controls on rare earth elements. This incident prompted investors to seek out safe-haven assets, placing pressure on risk-sensitive currencies like the New Zealand dollar. Further diminishing the kiwi's attractiveness, Paul Conway, the Chief Economist of the Reserve Bank of New Zealand, reaffirmed on Wednesday that the central bank is open to further policy easing. However, it intends to evaluate incoming economic data before making a decision. Looking ahead, investors are now focused on next week’s third-quarter inflation report for additional insights into the RBNZ’s potential rate-cut strategy. Throughout this week, the New Zealand dollar has maintained a stable trading range.