NZD Firm Amid Softening Dollar, Hawkish RBNZ Expectations
The New Zealand dollar has started the week on a firm footing, supported by a softer US dollar due to reduced geopolitical risk and lower oil prices.
The NZD/USD pair is trading above 0.5800 but showing limited follow-through from its early Asian session strength, with investors choosing to remain cautious ahead of the upcoming Federal Open Market Committee (FOMC) meeting.
A decrease in crude oil prices has alleviated some inflation concerns and cooled expectations for additional interest rate hikes by the US Federal Reserve (Fed), dragging the USD away from its monthly high.