NZ Dollar Rises on Weaker Greenback
On Wednesday, the New Zealand dollar advanced to approximately $0.593, supported by a decline in the US dollar due to growing concerns regarding the American economy. Domestic data provided additional encouragement, as New Zealand reported a trade surplus of $1.43 billion in April, a notable shift from the $0.01 billion deficit recorded in the same month the previous year. This improvement was largely attributed to a robust 25% increase in exports, significantly outpacing the modest 1.8% growth in imports. In terms of monetary policy, the Reserve Bank of New Zealand is largely expected to lower its official cash rate by 25 basis points next week. However, some investors speculate that the central bank's easing cycle might soon conclude, with rates forecasted to bottom out at 2.83% by the end of the year. Market participants are now turning their attention to Thursday's government budget, which is anticipated to propose baseline spending reductions for 2025.
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