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New Zealand Dollar Rises on Comments from RBNZ’s Orr; Dollar Inches Up

Investing.com - The New Zealand dollar rose against the U.S. dollar following comments by Reserve Bank of New Zealand (RBNZ)’s Governor Adrian Orr.

The New Zealand dollar traded 0.4% higher against the U.S. dollar after Orr told Bloomberg TV that he was "pleased" with where interest rates were at, and that the central bank will wait before changing monetary policy.

The RBNZ surprised markets earlier this month with a sharp 50-basis points rate cut.

The U.S. dollar index inched up 0.1% to $98.208 by 11:43 PM ET (03:43 GMT). Data showed overnight a decline in the manufacturing and services sector.

The IHS manufacturing PMI for August came in at 49.9 versus an estimate of 50.5, while the services PMI for August was at 50.9 compared to expectations of 52.8.

Markets were also focused on comments from Federal Reserve members at the central banks annual meeting in Jackson Hole. Traders are eager to find out if the central bank would provide signs of just how far it is prepared to slash rates. Markets currently forecast another cut in the September meeting.

Developments on the Sino-U.S. trade front remained in focus after China’s Ministry of Commerce Spokesman Gao Feng said Beijing “has no choice but to take corresponding countermeasures” if the U.S. “obstinately clings to its own way.”

The two sides are set to resume in-person meetings in September.

The USD/CNY pair gained 0.2% to 7.0946.

The Korean won weakened against the dollar as tensions between Japan and South Korea escalated after the later said it was cancelling an intelligence-sharing pact with Tokyo.

The USD/JPY pair rose 0.1% to 106.55.

The AUD/USD pair was little changed at 0.6757.

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