The New Zealand dollar rose to $0.607 on Monday, hovering near an eight-month high, supported by continued weakness in the US dollar. A dovish Fed outlook and fiscal concerns weighed on the greenback, while investors awaited US jobs data that could signal labor market softness and bolster the case for a July rate cut. Optimism over global trade negotiations also lifted sentiment, as the US signed a trade deal with China and signaled deals with other key partners are also close. However, the kiwi pared some gains as Chinese data showed private-sector PMI and services activity hit three-month highs, while manufacturing contracted for a third straight month amid deflation concerns. This poses risks to New Zealand exports given the countries’ close trade ties. Domestically, New Zealand’s ANZ Business Outlook Index climbed to 46.3 in June from 36.6 in May, marking the first improvement in sentiment since February as global tariff tensions eased.
