New Zealand Dollar Crashes to Two-Month Low as US Dollar Firms Up
The New Zealand Dollar has hit a two-month low, trading near 0.5780 as the US Dollar firms up ahead of potential interest rate hikes from the Federal Reserve.
This downward trend is largely driven by increased expectations of a Fed rate hike this week, which has boosted the value of the Greenback and led to higher US Treasury yields.
The NZD/USD pair has slipped below 0.5760, its lowest level since mid-July, after initially reaching a high near 0.5820 overnight.
Market analysts are closely watching China's August Industrial Production and Retail Sales figures, which are due to be released later in the day. A strong rebound in production could provide some relief for the Kiwi currency, while a soft read would likely compound pressure on the pair.