The New Zealand dollar rose to around $0.591 on Friday, set to post a weekly gain, supported by a weaker US dollar.
New Zealand set to post weekly gain
The Kiwi also received a boost from strong consumer confidence data, which hit its highest level in over three years in November, driven by falling interest rates and slowing inflation. Earlier this week, the Reserve Bank cut its cash rate by 50bps to 4.25%, marking its third consecutive rate reduction. Governor Adrian Orr suggested another 50bps cut could come as early as February, depending on economic conditions, and expressed confidence that inflationary pressures would continue to ease.
Tariff threats
However, recent tariff threats from US President-elect Donald Trump, particularly targeting China, have put pressure on the Kiwi, given New Zealand’s economic dependence on the Chinese market. The New Zealand dollar has gained over 1% this week, breaking a two-week losing streak.
