Kiwi Hits 10-Week Low as Traders Await US-China Summit
The New Zealand dollar traded near a ten-week low on Monday, reaching around $0.571. This comes as traders await a US-China summit later this week, which will discuss key areas including an extension of the tariff truce and further tariff reductions.
The current tariff truce is set to expire on November 10, and any positive developments could improve global risk sentiment and support the kiwi. China is New Zealand's largest trading partner, making these discussions crucial for the country's economy.
The Reserve Bank of New Zealand raised its cash rate earlier this month but signaled a more gradual pace of future tightening. Despite this, markets expect another rate hike in October due to increased upside inflation risks from recent oil price spikes.