Kiwi Dollar Holds Firm on Weak US Jobs Report

The New Zealand dollar (NZD) held firm on Monday, trading around $0.588 after rising to a more than two-month high in the previous session.

The greenback weakened due to a surprise contraction in the US labour market in July, reducing bets for a Federal Reserve rate hike in September.

Investors are now awaiting this week's inflation data for further clues on the policy path. The NZD is also drawing support from expectations that the Reserve Bank of New Zealand (RBNZ) could raise interest rates next month after signalling further tightening may be required to remove monetary stimulus and bring inflation under control.