NZD Gains Momentum as RBNZ Hawkish Tone and Soft US Inflation Boost Currency

The New Zealand Dollar (NZD) has gained strength and is now trading near 0.5950, driven by the Reserve Bank of New Zealand's (RBNZ) hawkish tone and softer US inflation data.

China left its benchmark lending rates steady for a 15th consecutive month in August, which also contributed to the NZD's gains.

The pair has reached a two-and-a-half-month high, with markets pricing in up to three further RBNZ rate hikes through early 2027.

Traders have reduced bets on a US Federal Reserve (Fed) rate increase in September, weighing on the Greenback and creating a tailwind for the NZD/USD pair.