NZD Gains Ground on Hawkish RBNZ Outlook and Stable Chinese Monetary Policy

The New Zealand Dollar (NZD) has gained ground for the second consecutive day, rising to around 0.5940 against the US dollar (USD) on Thursday.

This increase is largely due to expectations of another interest rate hike by the Reserve Bank of New Zealand (RBNZ), following hotter-than-expected inflation data in the country.

The RBNZ has strengthened its hawkish outlook, with markets pricing in up to three additional rate hikes through early 2027. This has reinforced expectations of another monetary policy tightening at the September meeting.

Meanwhile, the People's Bank of China (PBoC) kept its Loan Prime Rates (LPR) unchanged for the 15th consecutive month on Thursday, which provided some support to the NZD due to stable monetary conditions in China and strong trade ties between the two countries.