FX.co ★ New Zealand Dollar Heads for Weekly Gain

The New Zealand dollar climbed to approximately $0.575 on Friday, poised for a weekly gain, buoyed by positive manufacturing figures. The BusinessNZ Purchasing Managers' Index (PMI) revealed that New Zealand's manufacturing activity expanded for the sixth straight month in December, marking the fastest growth in four years. This report comes on the heels of data indicating that employment in November reached its highest level in eight months, while business confidence in the fourth quarter reached its strongest position since 2014. These indicators have heightened expectations for an interest rate hike later this year, with traders projecting a 57% likelihood of an increase in September, and the move being fully anticipated by October. However, the market perceives virtually no probability of an adjustment to the current 2.25% cash rate during the Reserve Bank of New Zealand's February meeting. For the week, the kiwi has demonstrated a 0.5% increase, set to break a two-week losing streak.