21.09.202602:11:34UTC+00New Zealand Dollar Trades Near 10-Week Low

The New Zealand dollar hovered around $0.571 on Monday, close to a ten-week low, as markets looked ahead to the upcoming US–China summit for clues on the state of relations between the world’s two largest economies. Key issues on the agenda reportedly include extending the current tariff truce, which expires on November 10, as well as potential additional tariff reductions, agricultural purchase commitments, and discussions on AI. Any positive outcome could bolster global risk sentiment and, in turn, support the kiwi, given that China is New Zealand’s largest trading partner.

The New Zealand dollar has come under pressure since the Reserve Bank of New Zealand raised its policy rate earlier this month but signalled a more measured pace of future tightening. Even so, markets broadly expect another rate hike in October, as the recent surge in oil prices has heightened upside risks to inflation. At the same time, a stronger US dollar—underpinned by expectations of further Federal Reserve rate increases—has compounded the downward pressure on the kiwi.