10.09.202604:28:13UTC+00New Zealand Dollar Trades Near Six-Week Low

The New Zealand dollar inched up to around $0.585 but stayed close to the six-week low reached in the previous session, reflecting a more dovish turn in the Reserve Bank of New Zealand’s policy outlook. Recent comments from policymakers have underscored a more cautious stance on further tightening, with some officials now appearing more worried about slowing economic growth than persistent inflation.

Markets largely anticipate that the RBNZ will leave interest rates unchanged at its October meeting, while a rate hike in December is still viewed as highly likely. Investors are now focused on BusinessNZ’s PMI release on Friday and second-quarter GDP data next week for additional insight into economic conditions and the central bank’s likely policy trajectory.

At the same time, the New Zealand dollar remained near a 13-year low against the Australian dollar, highlighting the contrast in monetary-policy expectations between the RBNZ and the Reserve Bank of Australia.