The New Zealand dollar traded around $0.583, near an over three-week high, supported by a weaker dollar amid renewed US-EU trade tensions. Investors are watching for Europe’s response, set to be discussed at an emergency meeting on Thursday, after President Trump threatened to impose extra tariffs on several European allies unless a deal over Greenland’s acquisition is reached. At home, a series of upbeat economic data has signaled that New Zealand’s economic recovery is gaining momentum, reinforcing expectations that the RBNZ could begin tightening policy later this year. While markets see almost no chance of a move in February, the probability of a hike by July has risen above 50%. Attention now turns to fourth-quarter CPI report on Friday, with annual rate expected at 3%, the upper bound of the RBNZ’s 1–3% target range. A stronger reading would boost the case for higher rates. Meanwhile, Prime Minister Luxon has announced a national election will be held on November 7.