Kiwi Edges Up Ahead of RBNZ Rate Decision

The New Zealand dollar edged up on Monday as investors await the Reserve Bank of New Zealand's interest rate decision, expected to raise rates by a quarter-point to 2.75%.

The kiwi dollar rose 0.2% to $0.5919, with support at $0.5860 and $0.5821 levels. It is set to end August 0.6% higher.

Markets see rates reaching 3.0% by December and 3.5% next year as the central bank shifts from stimulus to a more neutral policy stance.

Francesco Pesole, a FX strategist at ING, said there are downside risks for the NZD around this meeting, given the high hurdle for the RBNZ to validate market pricing.