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NZ dollar extends gains against soft USD to fresh June highs
NZD/USD rose to about 0.5965 to 0.5970, helped by renewed bets on another Reserve Bank of New Zealand rate hike while US rate hike expectations faded.
HousingWire reports the NZ dollar is extending its advance versus the US dollar for a third straight day, pushing NZD/USD to a fresh level since early June in the 0.5965 to 0.5970 area during Friday's Asian session.
FXStreet links the move to a weaker USD backdrop, with receding expectations for an immediate Federal Reserve interest rate hike and the effect of hawkish Federal Open Market Committee minutes that kept the possibility of further US tightening on the table.
The outlet also points to support from expectations of another interest rate hike by the Reserve Bank of New Zealand, while traders weigh inflation risks tied to higher oil prices amid the Middle East crisis.
FXStreet adds that investors are also pricing a geopolitical risk premium amid tensions involving the US and Iran, and notes New Zealand posted a July monthly trade deficit of NZ$1.95 billion, with traders now focused on upcoming US flash PMIs for near term direction.