The NZD/USD pair weakened to around 0.6120 on Tuesday due to a softer US Dollar, marking a 0.11% decline for the day. The Federal Reserve’s Mary Daly mentioned the need for rate cuts before inflation hits 2%, adding to pressure on the Kiwi. Expectations of earlier rate cuts by the Reserve Bank of New Zealand have also contributed to the NZD’s decline. Economic data from New Zealand is lacking, leaving the market to focus on speeches by FOMC members and upcoming US economic data releases later in the week. The US Federal Reserve remains cautious about rate cuts, with markets pricing in a 65% chance of a cut in September. Despite strong labor market conditions, inflation concerns persist. Recent data from New Zealand showed a slight improvement in the Trade Balance, with exports and imports both seeing increases.
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