Kiwio backs off eight-month high on profit-taking
The New Zealand dollar fell in Asian trade on Tuesday against a basket of major rivals, giving up an eight-month high against the dollar on profit-taking.
The odds of a New Zealand rate cut in July took a dip recently, with investors now awaiting important New Zealand data on inflation, unemployment, and growth to gather more clues.
The Price
The NZD/USD price fell 0.4% today to $0.6011, with an October 2024 high at $0.6055.
Kiwi closed 1.2%5 higher on the dollar on Monday, marking the third profit in four sessions on renewed concerns about US financial assets.
US Dollar
The dollar index rose 0.3% on Tuesday away from a six-week low at 99.58 against a basket of major rivals.
The dollar’s gains come as the Trump administration seeks to calm recent jitters with China and restore business confidence in the US.
Now investors await important US labor data, including job opportunities later today, and the crucial payrolls report on Friday.
New Zealand Rates
Following the Reserve Bank of New Zealand’s policy meeting in May, the odds of a 0.25% rate cut at the July meeting fell below 50%.
Now the futures market expected New Zealand interest rates to settle at 3% by the end of the year, up from 2.75% in previous forecasts.
Gold climbs to three-week high as dollar dips
Gold prices rose on Monday as the dollar dipped against most major rivals amid persistent concerns about the US-China trade tensions.
China asserted its commitment to take all measures to defend its interests, while condemning US President Trump’s claim that China violated the Geneva trade agreement.
Otherwise, US-EU tensions deteriorated even further as Trump vowed to increase steel tariffs to 50%, with Brussels warning that such a step would hurt trade talks.
The US ISM manufacturing PMI fell to 48.5 in May from 48.7 in April, while analysts expected 49.3.
Otherwise, the dollar index fell 0.6% as of 20:28 GMT to 98.7, with a session-high at 99.4, and a low at 98.6.
On trading, gold spot prices rose 2.7% as of 20:30 GMT to $2403.8 an ounce.
Wall Street opens June lower
US stock indices fell at the opening of June, amid renewed concerns about the US-China trade war.
China asserted its commitment to take all measures to defend its interests, while condemning US President Trump’s claim that China violated the Geneva trade agreement.
Otherwise, US-EU tensions deteriorated even further as Trump vowed to increase steel tariffs to 50%, with Brussels warning that such a step would hurt trade talks.
On trading, Dow Jones fell 0.4% as of 15:55 GMT, or 182 points to 42,087 points, while S&P 500 shed 0.2%, or 13 points to 5898 points, as NASDAQ gave up 0.1%, or 17 points to 19,096 points.