New Zealand Dollar Falls Back

2026-09-18 02:41 By Judith Sib-at 1 min. read

The New Zealand dollar slipped to around $0.571 on Friday, moving back near a ten-week low after rising 0.3% in the previous session, as a firmer US dollar continued to weigh on the currency.

The greenback clung to a seven-week high after the Federal Reserve hiked rates and signaled further tightening ahead.

This outweighed support from better-than-expected domestic data.

New Zealand’s GDP growth in the second quarter beat estimates, suggesting some resilience in economic activity despite the severe energy shock from US-Iran war.

In addition, the country’s trade deficit for August was smaller than forecast, with export growth outpacing the increase in imports.

Meanwhile, markets are pricing in a 60% chance that the Reserve Bank of New Zealand will raise its cash rate again to 3.0% at its October meeting.

The kiwi was down around 1.6% so far this week, marking its fourth consecutive weekly decline.



News Stream
New Zealand Dollar Falls Back
The New Zealand dollar slipped to around $0.571 on Friday, moving back near a ten-week low after rising 0.3% in the previous session, as a firmer US dollar continued to weigh on the currency. The greenback clung to a seven-week high after the Federal Reserve hiked rates and signaled further tightening ahead. This outweighed support from better-than-expected domestic data. New Zealand’s GDP growth in the second quarter beat estimates, suggesting some resilience in economic activity despite the severe energy shock from US-Iran war. In addition, the country’s trade deficit for August was smaller than forecast, with export growth outpacing the increase in imports. Meanwhile, markets are pricing in a 60% chance that the Reserve Bank of New Zealand will raise its cash rate again to 3.0% at its October meeting. The kiwi was down around 1.6% so far this week, marking its fourth consecutive weekly decline.
2026-09-18
New Zealand Dollar Gains Some Traction After GDP Data
The New Zealand dollar rose to around $0.573 after sliding to a ten-week low, with better-than-expected GDP data providing support. New Zealand’s economy expanded 0.2% in the three months to June, slightly exceeding the 0.1% market forecast and the Reserve Bank's expectation for no growth, though it was slower than the revised 0.9% growth in the first quarter. Annual GDP increased 2.6%, also beating the expected 2.3%. The figures pointed to some resilience in economic activity despite the severe energy shock stemming from the Middle East conflict. Currently, traders are pricing in a 65% chance of another rate hike to 3.0% at the RBNZ's next meeting in October. However, gains in the kiwi were limited by a stronger US dollar after the Federal Reserve raised interest rates for the first time in more than three years to 3.75%-4.00% and signaled that another hike was likely before year-end.
2026-09-17
Kiwi Dollar Drops Further Ahead of Fed Decision
The New Zealand dollar fell further to $0.574, its lowest level in over two months, as traders prepared for a widely anticipated Federal Reserve rate hike later today, supporting the US dollar. Markets will also watch the Fed’s updated dot plot and economic projections for clues on future rate moves. Investors’ attention is also on New Zealand’s second-quarter GDP data on Thursday, with economists expecting only modest growth from the previous quarter. Market pricing currently implies another rate hike from the Reserve Bank at its October meeting, even as policymakers signaled a slower pace of rate increases. Meanwhile, RBNZ Assistant Governor Karen Silk has resigned after more than four years with the bank. Silk will participate in two more MPC meetings before departing in mid-December.
2026-09-16