The New Zealand dollar edged up to $0.596 as investors digested comments from Prime Minister Christopher Luxon. In a pre-Budget speech, Luxon reaffirmed the government’s commitment to returning the budget to a surplus by 2028–29 and placing debt on a downward trajectory toward 40% of GDP. The country's Budget for 2026 will be delivered on May 28. Meanwhile, investors remain focused on geopolitical developments in the Middle East, where rising tensions have pushed oil prices higher. This has complicate New Zealand’s efforts to contain inflation while supporting an economic recovery. Reserve Bank of New Zealand Governor Anna Breman recently noted that core inflation measures remained stable within the central bank’s target range in the first quarter, prompting investors to trim bets on a rate hike in May. However, markets continue to fully price in an increase in July as elevated energy costs fuel inflation concerns.