The New Zealand dollar held its recent advance to around $0.595 on Wednesday, supported by a weaker US dollar after a tame US consumer inflation reading bolstered expectations of a Federal Reserve rate cut in September. Back at home, the kiwi remains under pressure as markets increasingly expect the Reserve Bank of New Zealand to cut its official cash rate by 25bps next week, following weaker-than-expected inflation data and a soft labour market report. Sentiment was also weighed down by concerns over the impact of US tariffs on New Zealand’s export-driven economy. Earlier this week, Prime Minister Christopher Luxon conceded the government is unlikely to win a reduction in the 15% US tariff on New Zealand goods - a rate higher than that faced by some competitors, such as Australia and the UK, which are at 10%.