New Zealand Dollar gains as high inflation fuels odds of RBNZ September rate hikes
NZD/USD gains ground after registering modest losses in the previous day, trading around 0.5960 during the Asian hours on Tuesday. The pair appreciates as the New Zealand Dollar (NZD) receives support on expectations that the Reserve Bank of New Zealand will raise interest rates again in September, as inflation remains elevated. RBNZ tightening path seen as firmly priced into Kiwi rates Strategists at Brown Brothers Harriman note that the upcoming RBNZ meeting on September 2 will be closely watched, as it includes a fresh Monetary Policy Statement and comes with market expectations already firmly set. They point out that “the next RBNZ policy decision, which also includes a fresh Monetary Policy Statement, is on September 2 and a 25bps back-to-back hike to 2.75% is virtually fully priced-in,” underscoring how investors see the central bank maintaining its tightening trajectory despite recent mixed domestic data. Additionally, the NZD/USD pair gains ground as the US Dollar (USD) continues to face downward pressure following the US Treasurys decision to double its buyback operations for longer-dated bonds. Discover more Merchant Services & Payment Systems Distributed & Cloud Computing Finance Reports suggest US Treasury Secretary Scott Bessent could tap up to $1 trillion from the Treasury General Account to finance these repurchases. Geopolitical tensions