NZD Edges Higher Amid US Rate Hike Expectations and Strait of Hormuz Deal

The New Zealand dollar (NZD) saw a slight rebound on Thursday to around $0.595, following a 0.5% drop in the previous session due to the US dollar's strength after economic data releases.

The data, which included inflation and other indicators, boosted expectations for a Federal Reserve rate hike, with traders now awaiting Fed Chair Kevin Warsh's speech at the Jackson Hole symposium on Friday for clues about the September policy decision.

Despite this, the kiwi remains supported by expectations of another 25-basis-point rate hike from the Reserve Bank of New Zealand next week, with a projected policy rate of 3.0% by year-end.