NZD/USD Sees Fresh Downside Leg Below 0.57
The New Zealand Dollar (NZD) is trading higher against the US Dollar (USD), nearing the 0.5730 mark during the European session on Monday.
This comes as the US Dollar Index (DXY) rises 0.1% to around 100.31, with analysts attributing the strength to expectations of further interest rate hikes by the Federal Reserve (Fed).
According to HSBC, the USD's rise was anticipated, and the unanimous vote for a 25bp hike reinforced confidence in the Fed's tightening bias.
The NZD is benefiting from optimism surrounding the meeting between Chinese leader XI Jinping and US President Donald Trump, which may lead to agreements on trade, Artificial Intelligence (AI), and critical minerals.
With New Zealand being a key trading partner of China, an improvement in Beijing's economic outlook bodes well for the NZD.