New Zealand Dollar Trades Near 10-Week Low

2026-09-21 02:11 By Judith Sib-at 1 min. read

The New Zealand dollar traded around $0.571 on Monday, near a ten-week low, as traders looked to a US-China summit later this week for indications on the state of relations between the world’s two largest economies.

Among the key areas under discussion are an extension of the current tariff truce, which is set to expire on November 10, further tariff reductions, agricultural purchases, and AI.

Any positive developments could improve global risk sentiment and support the kiwi, given that China is New Zealand’s largest trading partner.

The kiwi has been under pressure since the Reserve Bank of New Zealand raised its cash rate earlier this month but signalled a more gradual pace of future tightening.

Still, markets largely expect the central bank to hike rates again in October, as the recent spike in oil prices has increased upside inflation risks.

Meanwhile, a firmer US dollar, supported by expectations of more Fed rate hikes, has added to downward pressure on the kiwi.



News Stream
New Zealand Dollar Trades Near 10-Week Low
The New Zealand dollar traded around $0.571 on Monday, near a ten-week low, as traders looked to a US-China summit later this week for indications on the state of relations between the world’s two largest economies. Among the key areas under discussion are an extension of the current tariff truce, which is set to expire on November 10, further tariff reductions, agricultural purchases, and AI. Any positive developments could improve global risk sentiment and support the kiwi, given that China is New Zealand’s largest trading partner. The kiwi has been under pressure since the Reserve Bank of New Zealand raised its cash rate earlier this month but signalled a more gradual pace of future tightening. Still, markets largely expect the central bank to hike rates again in October, as the recent spike in oil prices has increased upside inflation risks. Meanwhile, a firmer US dollar, supported by expectations of more Fed rate hikes, has added to downward pressure on the kiwi.
2026-09-21
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