NZD Edges Up on Optimism Over Xi-Trump Meeting, Fed Hikes Looming
The New Zealand Dollar (NZD) has edged up against the US Dollar (USD) amidst optimism over the upcoming meeting between Chinese leader Xi Jinping and US President Donald Trump, which is set to take place from September 23-25.
According to Bloomberg, the meeting aims to clear the way for possible agreements on trade, Artificial Intelligence (AI), and critical minerals. Given New Zealand's key trading partnership with China, an improvement in Beijing's economic outlook bodes well for the NZD.
The US Dollar trades broadly firm due to expectations that the Federal Reserve (Fed) will deliver more interest rate hikes this year. Analysts at HSBC note that the USD strengthened following the decision, as the unanimous vote reinforced confidence in the Committee's tightening bias.