NZD Continues to Outperform USD Amid Soft US Retail Sales
The New Zealand Dollar (NZD) has continued to hold its ground against the US Dollar (USD), reaching its highest level since early June. As of writing, the pair is trading in the mid-0.5900s, with little change on the day.
According to data released for July trade figures, New Zealand's exports came in just above imports, but this had a minimal impact on the NZD/USD exchange rate. The real story behind the currency's strength lies across the Pacific, where a soft US retail sales report has trimmed bets on a Federal Reserve (Fed) rate hike next month.
As a result, the Greenback has weakened, allowing the Kiwi to extend its rebound. However, market participants are now looking ahead to the Reserve Bank of New Zealand's (RBNZ) meeting next month, where another interest rate hike is still priced in but no longer certain.