RBNZ Hike Looms as Kiwi Rises, Aussie Seeks Recovery

The New Zealand dollar rose 0.2% to $0.5919 as traders prepared for the Reserve Bank of New Zealand's interest rate decision on Wednesday.

The central bank is widely expected to raise rates by a quarter-point to 2.75%, but there's uncertainty about how high rates will go with its new economic forecasts.

Investors see rates reaching 3.0% by December and 3.5% next year, as the RBNZ shifts from stimulus to a more neutral policy stance.

In contrast, the Australian dollar edged up 0.2% to $0.7170 after breaking an eighth-week winning streak.