Kiwi Dollar Bounces Back from New Low Amid Cheap Oil

The New Zealand dollar (NZD/USD) has been on a downward trend for four weeks, dipping to its lowest level since early July. On Tuesday, the pair fell below 0.5700 but quickly rebounded into the 0.5700-0.5800 range it had been trading in since September 16.

The bounce was attributed to cheaper crude oil prices, which have a positive impact on countries that import fuel. New Zealand is one of these countries, and lower oil prices reduce its import bill, leading to fewer NZD being sold to buy dollars for imports.

Despite the country's economy growing at 0.2% in the second quarter, beating forecasts, the Kiwi dollar barely moved. The Reserve Bank of New Zealand (RBNZ) had raised interest rates in September and expected another increase, but the market remained skeptical.