The New Zealand dollar rose to around $0.603 on Wednesday, marking its third consecutive session of gains, supported by a broadly weaker US dollar amid optimism over a shaky ceasefire between Israel and Iran. Both countries signaled that the air war between them had ended, at least for now, after President Donald Trump publicly scolded them for violating a truce he had announced.
Meanwhile, US Federal Reserve Chair Jerome Powell maintained a cautious stance in his semi-annual testimony before Congress on Tuesday, reiterating that the Fed is in no hurry to cut rates. At home, data showed New Zealand’s trade surplus widened sharply in May compared to the same month last year, as export increased faster than imports. This followed last week’s release of better-than-expected Q1 GDP figures, which pointed to a strengthening economic recovery. These indicators supported the case that the Reserve Bank is nearing the end of its easing cycle.
