The New Zealand dollar rose to around $0.589 on the first trading day of August, reaching a two-month high, as a fresh wave of yen buying weighed broadly on the US dollar, while fresh negotiations in the Middle East lifted risk appetite. The greenback extended its decline after Japan confirmed it had engaged in joint yen-buying intervention with the US on Friday. Meanwhile, President Donald Trump said new talks with Iran would begin on Monday after he canceled a weekend attack against Tehran, raising hopes for progress toward resolving the months-long conflict. Improving domestic sentiment, with New Zealand businesses and consumers becoming more optimistic, also underpinned the kiwi. Traders now await the country’s second-quarter jobs report for further clues on the state of the economy. Currently, markets are almost fully pricing in a quarter-point rate hike by the Reserve Bank of New Zealand in September.
