NZD Gains Momentum as Traders Eye US Employment Report

The New Zealand Dollar (NZD) has gained momentum and is trading near 0.5895 against the US Dollar, as traders wait for the release of the August employment report from the United States.

Fed Governor Christopher Waller stated that he leans towards keeping interest rates steady at the Fed's September meeting, provided there are no surprises in upcoming inflation data. This has led to a decrease in the chances of a US rate hike this month, with traders now pricing in nearly 50.2% odds of a quarter-point hike in September.

On the other hand, the Reserve Bank of New Zealand (RBNZ) raised its Official Cash Rate by 25 basis points to 2.75%, but RBNZ Assistant Governor Karen Silk stated that the central bank is more likely to wait until December before raising interest rates again.