03.07.202603:19:06UTC+00New Zealand Dollar Heads for Weekly Gain

The New Zealand dollar climbed toward $0.570, poised for its first weekly gain in three weeks after rebounding from a seven-month low, as the US dollar weakened. The greenback slipped to a two-week low after a softer-than-expected US jobs report led investors to scale back expectations of an imminent Federal Reserve rate hike.

The kiwi was further supported by growing expectations that the Reserve Bank of New Zealand will raise interest rates next week, with market pricing implying roughly a 78% probability of a move. Even so, economists remain split, with some arguing for a pause as easing oil prices have reduced inflation pressures.

Domestic data this week also underpinned the currency: business sentiment improved, suggesting the economy may not slow as sharply as previously anticipated. Consumer confidence picked up as well, with inflation worries tied to the earlier surge in oil prices receding quickly.