FX.co ★ New Zealand Dollar Near 8-Week High

The New Zealand dollar traded around $0.587 on Friday, near an eight-week high, supported by a weaker US dollar and upbeat domestic data. The greenback softened as investors reassessed the Federal Reserve’s policy outlook after it opted to keep interest rates unchanged, even as inflation risks rose amid renewed tensions in the Middle East.

On the domestic front, the ANZ-Roy Morgan Consumer Confidence Index climbed 8 points in July to 99.3, its highest reading in five months and a marked recovery from April’s low. The release followed a separate ANZ business confidence survey a day earlier, which also showed an improvement in firms’ sentiment.

Market pricing currently suggests nearly a 90% chance that the Reserve Bank of New Zealand will raise its cash rate again in September. The kiwi has advanced more than 1% this week and over 3% so far in July.