NZD Gains Momentum as Fed and RBNZ Suggest Caution
The New Zealand Dollar (NZD) is gaining momentum to reach near 0.5900 against the US Dollar, as investors await the release of August's employment data from the US.
Federal Reserve Governor Christopher Waller stated that he is leaning towards keeping interest rates steady at the September meeting if there are no surprises in upcoming inflation data.
This has caused traders to trim their bets on a US rate hike this month, weighing on the Greenback. The markets now price in nearly 50.2% odds of a quarter-point hike in September, down from 63.2% on Wednesday according to the CME's FedWatch tool.
The Reserve Bank of New Zealand (RBNZ) has also signaled that it may wait until December before raising interest rates again, following its decision to raise the Official Cash Rate by 25 basis points to 2.75% this week.