06.02.202603:31:38UTC+00New Zealand Dollar Remains Near 2-Week Lows

The New Zealand dollar experienced a slight uptick to $0.596, yet remained near its lowest point in almost two weeks. This stabilizing act occurred amid diminished speculations regarding an imminent rate hike from the Reserve Bank of New Zealand. Market reactions followed a mixed jobs report earlier this week, revealing an unexpected climb in unemployment to a decade-long high, although employment surged beyond forecasts. Consequently, market participants have delayed expectations for a short-term rate increase. Traders are now anticipating a rate increase in October, with the implied probability of a September hike standing at approximately 70%. The Reserve Bank of New Zealand is scheduled to convene later this month, marking the first meeting under the leadership of its new governor, Anna Breman. It is widely anticipated that policymakers will maintain current interest rates. The central bank will also unveil updated economic and interest-rate forecasts, with keen attention from markets on whether it sustains its guidance for a prospective rate hike by mid-2027. For the week, the New Zealand dollar has declined by about 1%, potentially ending a streak of three consecutive weeks of gains.