The New Zealand dollar continues to appreciate against the US dollar. The current NZDUSD exchange rate stands at 0.6131.
Investors are eagerly awaiting the Reserve Bank of New Zealand’s next meeting. The RBNZ is expected to keep the current monetary policy structure unchanged for the seventh consecutive time. The interest rate may remain at 5.5% per annum. Monetary policymakers are highly likely to reiterate the need to maintain restrictive monetary policy for an extended period, which is necessary to bring inflation back to the target range of 1-3%.
Last week’s data showed a reduction in two-year inflation expectations to a three-year low, reinforcing rumours that the RBNZ might still consider the possibility of lowering interest rates this year.
The global market awaits the release of the US Federal Reserve’s meeting minutes this week and speeches from several key Federal Reserve monetary policymakers. Investors might receive additional clues about the US interest rate trajectory.