New Zealand Dollar Ticks Down Ahead of GDP Data
On Wednesday, the New Zealand dollar dipped to $0.597, interrupting a two-day upward trend as traders exercised caution in anticipation of Thursday’s GDP report. The economy is predicted to shrink by 0.3% in the June quarter, supporting the Reserve Bank of New Zealand's dovish stance. Recently, RBNZ Governor Christian Hawkesby reaffirmed the central bank’s forecast for a total reduction of 50 basis points in the official cash rate by the end of the year, emphasizing that the speed of this easing would be data-dependent. Currently, the market anticipates a 25 basis point cut at the October meeting, with rates expected to decline towards 2.50% by early 2026. However, the decline of the kiwi was softened by a weaker US dollar, as investors expect the Federal Reserve to reduce rates by 25 basis points at the conclusion of its two-day policy meeting later today.
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