The New Zealand dollar rose to around $0.60 on Tuesday, extending its rebound from a more than four-week low, after President Donald Trump announced a ceasefire agreement between Iran and Israel. Trump indicated the ceasefire had begun late Monday, with Iran expected to halt its attacks first, followed by Israel. However, caution persisted after Iran’s foreign minister denied reports of a US-brokered deal, stating that Iran would only stop its attacks if Israel ended its airstrikes.
Meanwhile, dovish signals from Federal Reserve officials favoring near-term rate cuts weighed on the US dollar, providing additional support for the Kiwi. On the domestic front, data last week showed that New Zealand’s GDP grew faster than expected in the first quarter, marking a second consecutive quarter of expansion after two quarters of contraction. This reinforced market expectations that only one more rate cut is likely in the current easing cycle, fully priced in by November.
