The New Zealand dollar hovered around $0.572 on Friday, near Monday’s six-month low of $0.568, amid ongoing US-China trade tensions and a dovish policy outlook at home. Frictions between the two major economies resurfaced after Washington and Beijing clashed over rare earths export controls, prompting investors to flock to safe-haven assets and leaving risk-sensitive currencies like the kiwi on the defensive. Further dampening the kiwi’s appeal, Reserve Bank of New Zealand Chief Economist Paul Conway reiterated on Wednesday that the central bank remains open to further policy easing, though it will assess incoming economic data before deciding. Investors now look ahead to next week’s third-quarter inflation report for further clues on the RBNZ’s rate-cut path. So far this week, the kiwi has traded broadly flat.
