The New Zealand dollar is rising against the US dollar. The current NZDUSD exchange rate stands at 0.6142.
Trading volumes for the NZD appear relatively small at the beginning of the week due to the market pause in observance of the King's Birthday.
The main support for the NZD now is the weak US dollar. The US Personal Consumption Expenditures index, Core PCE, for April, released on Friday, was in line with expectations at 2.7% y/y, allowing the US Federal Reserve to lower the interest rate this year. The dollar has naturally weakened while other currencies have risen.
Maintaining high interest rates in New Zealand supports the NZD's position despite some weakening in the domestic economy.
Earlier, the RBNZ reaffirmed its hawkish stance on monetary policy, surprising many by considering an interest rate hike. Meanwhile, inflation expectations remain unchanged, slightly reducing the likelihood of monetary policy tightening.