NZD/USD Shoots to One-Month High as Inflation Talk Shifts Market Mood 🚀

Kiwi's on a roll against the greenback. NZD/USD touched 0.5973 today. Highest since mid-August. Up nearly 0.50%. Second day climbing as the USD loses steam after those US inflation numbers dropped.

The Dollar Index? Down from its peak. Sitting around 97.50 now. Markets changing their tune. 📉

August inflation in the US came in hot. Monthly CPI jumped 0.4%. That's more than July's 0.2%. Bit higher than the 0.3% everyone expected. Yearly inflation stuck at 2.9%, while core inflation hit the forecasts dead-on at 0.3% monthly and 3.1% yearly.

These numbers don't seem to shake things up much for the Fed meeting. Traders still betting heavily on that 25-point cut. Almost unanimous. 🔮

Back home, RBNZ's Hawkesby admitted the economy kinda "stalled" mid-year. Good news though—inflation's back in the 1-3% target range. Latest reading shows 2.7% in Q2, slight bump from Q1's 2.5%.

He's hinting the cash rate might drop toward 2.50% by December. Currently sits at 3.25%. Timing depends on how quickly things recover. 📊

It's a "test of trust" for the central bank after leadership shuffles. But Hawkesby insists they're all in on keeping inflation stable.

What's next? Friday's BusinessNZ Manufacturing PMI looks interesting. July's number surprised everyone with a jump to 52.8 from 48.8. First expansion in three months. Another good reading might push the Kiwi even higher. Bad news could burst the bubble. 🌕

Over in America, those Michigan consumer sentiment surveys are coming up. Could shake things up for NZD/USD as everyone positions before next week's big Fed announcement. Kind of exciting times. 🔥

Economic Indicator: BusinessNZ PMI Next release: Thu Sep 11, 2025 22:30 Frequency: Monthly Previous: 52.8 Source: Business NZ