NZD Gains Amid Expectations of Another Rate Hike from RBNZ

The New Zealand Dollar (NZD) gained value against the US Dollar (USD) on Tuesday, trading around 0.5960 during Asian hours, as investors anticipate another interest rate hike by the Reserve Bank of New Zealand (RBNZ) in September.

Strategists at Brown Brothers Harriman note that the upcoming RBNZ meeting on September 2 will be closely watched, with market expectations already set for a 25bps back-to-back hike to 2.75%.

The NZD/USD pair also benefited from downward pressure on the US Dollar following the US Treasury's decision to double its buyback operations for longer-dated bonds, which could tap up to $1 trillion from the Treasury General Account.