FX.co ★ New Zealand Dollar Hits 2-Week High

On Monday, the New Zealand dollar appreciated to approximately $0.591, marking its highest point in almost two weeks. This increase was primarily attributed to a weaker US dollar. The market's attention has now turned to upcoming US labor reports, which are pivotal in determining the Federal Reserve's decision on whether to cut interest rates. Meanwhile, market participants also continue to monitor the ongoing inflationary pressures and broader economic uncertainties, such as a legal ruling against tariffs imposed by the Trump administration and President Biden's dispute with the Federal Reserve concerning Governor Lisa Cook. In addition, the New Zealand dollar, often traded as a proxy for the Chinese yuan, benefited from a private survey indicating an unexpected resurgence in growth within China's manufacturing sector in August. Nonetheless, any further appreciation was tempered by the anticipation of additional monetary easing from the Reserve Bank of New Zealand. Last month, the bank reduced interest rates and indicated its willingness to provide further economic support amid both global and domestic challenges. Reflecting this cautious economic outlook, consumer confidence in New Zealand dropped to a ten-month low in August, largely due to slowing job and income growth.