New Zealand Dollar Hovers Near 8-Week High

2026-07-31 03:21 By Judith Sib-at 1 min. read

The New Zealand dollar hovered around $0.587 on Friday, close to an eight-week high, supported by a softer US dollar and positive domestic economic news.

The US dollar came under pressure following the Federal Reserve’s cautious policy stance and a suspected Japanese intervention in the forex market to support the yen.

On the domestic front, the ANZ-Roy Morgan Consumer Confidence Index rose 8 points in July to 99.3, marking its highest level in five months and a significant recovery from the low reached in April.

The survey was released a day after a business confidence survey from the same bank showed firms had also become more optimistic.

However, ANZ Chief Economist Sharon Zollner noted that developments in the Middle East could continue to weigh on both business and consumer confidence as long as the situation remains volatile.

Meanwhile, markets are almost fully pricing in a 25-bp rate hike by the RBNZ in September.

The kiwi has gained more than 1% this week and over 3% in July.



News Stream
New Zealand Dollar Hovers Near 8-Week High
The New Zealand dollar hovered around $0.587 on Friday, close to an eight-week high, supported by a softer US dollar and positive domestic economic news. The US dollar came under pressure following the Federal Reserve’s cautious policy stance and a suspected Japanese intervention in the forex market to support the yen. On the domestic front, the ANZ-Roy Morgan Consumer Confidence Index rose 8 points in July to 99.3, marking its highest level in five months and a significant recovery from the low reached in April. The survey was released a day after a business confidence survey from the same bank showed firms had also become more optimistic. However, ANZ Chief Economist Sharon Zollner noted that developments in the Middle East could continue to weigh on both business and consumer confidence as long as the situation remains volatile. Meanwhile, markets are almost fully pricing in a 25-bp rate hike by the RBNZ in September. The kiwi has gained more than 1% this week and over 3% in July.
2026-07-31
Kiwi Dollar Rises to 8-Week High
The New Zealand dollar rose toward $0.588, reaching its highest level since early June, as the US dollar softened after the Federal Reserve stood pat on rates, while upbeat business survey at home also provided support for the currency. The greenback declined after the Fed held its benchmark interest rate steady for the fifth consecutive meeting, despite persistent inflation pressures and a recent surge in energy prices. On the domestic front, the ANZ Business Confidence Index jumped to 56.1 in July from 36.6 in June, as firms became more optimistic about the economic outlook. However, sentiment weakened toward the end of the month as renewed fighting in the Middle East triggered volatility in oil prices. Markets continued to expect the Reserve Bank of New Zealand to raise its cash rate again at its September meeting, following higher-than-expected inflation data last week.
2026-07-30
New Zealand Dollar Range-Bound
The New Zealand dollar traded around $0.578, moving sideways so far this week, with investors awaiting the US Federal Reserve's policy decision while monitoring developments in the Middle East. Although the consensus is for the Fed to hold rates steady, markets continue to price in roughly a one-third probability of a 25-bp increase. Meanwhile, geopolitical risks resurfaced after the US and Saudi Arabia carried out strikes against Iran-backed groups in Iraq, hours after Washington said it had intercepted Iranian missile attacks targeting US forces in the region. Investors are also looking ahead to New Zealand's business confidence and consumer sentiment data later this week for fresh clues on the economic outlook. The Reserve Bank of New Zealand is widely expected to deliver another 25-bp hike in September following hot inflation data last week, with markets implying rates to reach at least 3.0% by year-end and peak at 3.5% around mid-2027.
2026-07-29