NZD Slides Toward Range Floor as US Yields Climb

The New Zealand Dollar (NZD) has been declining against the US dollar, and it's currently trading near its range floor since April. The pair is hovering around 0.5700, which is its lowest level since early July.

This comes as two-year US government bond yields rose to about 4.9% after strong US business surveys. The Reserve Bank of New Zealand (RBNZ) has raised its Official Cash Rate twice since July 8, but the market is anticipating a potential rate hike in December.

The RBNZ's forecast points to no change in its October 28 decision and a rise to 3.00% in December. However, RBNZ Governor Breman has warned that near-term inflation could run above the bank's forecast if Crude Oil stays expensive.