The NZD/USD pair gains momentum to near 0.5950 during the Asian trading hours on Thursday.
The pair holds near a two-and-a-half-month high, bolstered by hawkish Reserve Bank of New Zealand (RBNZ) tone and softer US inflation data
The People’s Bank of China (PBOC) left its Loan Prime Rates (LPRs) unchanged on Thursday. The one-year and five-year LPRs were at 3.00% and 3.50%, respectively. Additionally, China’s Commerce Ministry announced a decision on corporate tax rates for enterprises related to anti-dumping measures on imported polyoxymethylene from the United States (US), the European Union (EU), Taiwan and Japan, Reuters reported.
Hotter-than-expected New Zealand CPI inflation data has cemented expectations for continued monetary tightening, with swaps pricing in up to three further RBNZ rate hikes through early 2027. On the other hand, traders reduce bets on the US Federal Reserve (Fed) rate increase in September, weighing on the Greenback and creating a tailwind for the pair. Markets are now pricing a 32.7% probability of a Fed rate hike at the September policy meeting, down from 47% a month earlier, according to the CME FedWatch Tool.