08.01.202604:00:50UTC+00New Zealand Dollar Steady

The New Zealand dollar remained steady at approximately $0.576, exhibiting little movement this week, as investors keep a close watch on geopolitical developments while evaluating the domestic policy outlook. The political instability in Venezuela, following the removal of President Nicolas Maduro, along with mounting tensions between China and Japan, continue to influence global risk appetite. Apart from geopolitics, market attention is focused on the upcoming US jobs report on Friday, which could provide further insights into the Federal Reserve's interest rate trajectory. Meanwhile, the Reserve Bank of New Zealand has signaled that its easing cycle likely concluded last year after a total reduction of 225 basis points, yet it has also tempered expectations for an imminent rate hike. In December, Governor Anna Breman suggested that interest rates are likely to remain static for the foreseeable future. At present, markets are forecasting less than a 50% probability of a rate hike before September, with an increased likelihood of action in October.