FX.co ★ New Zealand Dollar Holds Ground

The New Zealand dollar stabilized near $0.588 on Monday after experiencing a 0.8% rise on Friday as the US dollar weakened in response to a disappointing jobs report. The data released on Friday indicated that American employers added fewer jobs than anticipated in August, signaling a cooling labor market. This development increased speculation that the Federal Reserve might consider reducing interest rates later this month. Nevertheless, the kiwi's gains are limited by the anticipated monetary easing from the Reserve Bank of New Zealand. The market predicts a potential rate cut at the RBNZ's meeting in October, with expectations of rates declining to around 2.50% by early 2026. The currency has been under pressure since the central bank reduced its official cash rate to 3.0% last month and indicated the possibility of further cuts to bolster New Zealand's sluggish economy.