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2025.10.3003:52:56UTC+00New Zealand Dollar Rebounds

The New Zealand dollar experienced a rebound, reaching close to a three-week high of approximately $0.577 on Thursday. This recovery followed a 0.3% decline overnight due to the US dollar's strengthening, which was influenced by hawkish comments from Federal Reserve Chair Jerome Powell. While the Federal Reserve enacted the widely anticipated 25 basis points rate cut on Wednesday, Powell emphasized that a subsequent cut in December "is not a given," thereby tempering expectations for a prolonged cycle of monetary easing. Focus has now turned to the much-anticipated meeting between US President Trump and Chinese President Xi in South Korea, taking place later today. Investors are optimistic about potential advancements towards a trade agreement. Nevertheless, any upward movement for the New Zealand dollar remains constrained by the likelihood of additional monetary easing from the Reserve Bank of New Zealand, with traders nearly certain about a 25-basis points rate cut expected in November.

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