The New Zealand dollar edged up to $0.575 on Friday but remained close to a six-month low, as sentiment continued to be weighed down by the dovish stance of the Reserve Bank. Earlier in the week, the RBNZ cut its official cash rate by an outsized 50bps to 2.50%, the lowest level since July 2022, and left the door open to yet further easing amid concerns about the frail state of the economy. Markets are now pricing in an 80% probability of a 25bps rate cut at the RBNZ’s next meeting in November, and a 36% chance of ending at 2.0%. Downward pressure on the kiwi was compounded by a stronger US dollar, which is aided by hawkish tone from some Federal Reserve officials, both in the minutes from September’s meeting as well as ongoing commentary. In economic news, New Zealand’s Manufacturing PMI was unchanged at 49.9 in September, signaling continued contraction and a lack of momentum in the sector. The New Zealand dollar has declined more than 1% so far this week.