The New Zealand dollar fell to around $0.586 on Monday, despite stronger-than-expected domestic data.
NZ dollar falls despite strong data
Recent reports revealed that New Zealand's producer output prices rose by 1.5% year-on-year and 1.9% quarter-on-quarter in the three months to September, both exceeding market expectations and accelerating from the previous period. Additionally, while still in contraction, the country’s services sector performance index improved to 46 in October, up from 45.7 in September.
Awaiting RBNZ rate decision
This data comes ahead of the Reserve Bank of New Zealand's monetary policy decision next week, with markets widely expecting another 50 basis-point rate cut, following the same reduction in October. Despite the positive domestic data, the Kiwi remained under pressure, weighed down by the persistent strength of the US dollar, which has been bolstered by robust US economic data and hawkish comments from Federal Reserve Chair Jerome Powell.
