FX.co ★ New Zealand Dollar Extends Gains

The New Zealand dollar strengthened to $0.562 on Friday, extending its rebound from an 18‑month low as the US dollar softened amid declining US Treasury yields. The greenback’s retreat came despite robust inflation and consumer spending data, which reinforced expectations that the Federal Reserve may continue to raise interest rates.

The kiwi also drew support from hawkish comments by Reserve Bank of New Zealand Chief Economist Paul Conway on Thursday. Conway noted that the late‑October policy decision remains completely open, but reiterated that the central bank still considers a further increase in the Official Cash Rate the most likely outcome, even though the exact timing is uncertain.

Investor focus now turns to next week’s third‑quarter inflation figures, which could offer fresh guidance on the RBNZ’s policy path. The release will be the last major data point before the central bank’s October 28 meeting. The New Zealand dollar is up 0.3% so far this week, putting it on course to break a seven‑week losing streak.