FX.co ★ New Zealand Dollar Attempts to Rebound

The New Zealand dollar ticked up to around $0.563 on Thursday, attempting to recover from a two-week low after RBNZ Governor Anna Breman signaled a strong chance of a rate hike in December. She said all committee members agree that further monetary tightening is likely, though the timing remains uncertain and will depend on the economic outlook and inflation trends. Her remarks followed the central bank’s unexpected decision a day earlier to keep the cash rate unchanged at 2.75%, while clearly leaving the door open to future increases. Markets are now pricing in a 77% probability of a rate hike at the RBNZ’s final policy meeting of the year. Meanwhile, data showed a modest rise in business confidence in October, with all measures of future activity turning positive despite ongoing volatility in oil prices.