FX.co ★ Kiwi Dollar Extends Rebound

The New Zealand dollar advanced to approximately $0.60 on Tuesday, continuing its recovery from a recent low spanning over four weeks. This uptick followed the announcement by President Donald Trump regarding a ceasefire agreement between Iran and Israel. Trump stated that the ceasefire had commenced late on Monday, with Iran anticipated to cease its attacks initially, followed by Israel. Nonetheless, uncertainty remained after Iran's foreign minister refuted claims of a US-mediated agreement, asserting that Iran would only cease its attacks if Israel stopped its airstrikes. Concurrently, dovish indications from Federal Reserve officials advocating for imminent interest rate cuts exerted downward pressure on the US dollar, which in turn supported the New Zealand dollar. Domestically, data from the previous week revealed that New Zealand’s GDP experienced faster-than-anticipated growth in the first quarter, marking a second consecutive quarter of expansion following two quarters of contraction. This data reinforced market expectations that the current monetary easing cycle may only see one additional rate cut, which is fully anticipated by November.