New Zealand: NZDollar Rebounds After Rate-Cut Selloff.

The New Zealand dollar rose toward $0.58 on Thursday, recovering from losses in the previous session when the Reserve Bank surprised markets with a larger-than-expected rate cut. On Wednesday, the central bank reduced its official cash rate by 50bps to 2.50%, the lowest level since July 2022, citing concerns about the fragile state of the economy and left the door open to further easing. Markets are now almost fully pricing in a 25bps cut at the RBNZ's next meeting in November, with rates projected to fall to 2% by 2026. Meanwhile, in the US, minutes from the latest FOMC’s meeting revealed that most members support further rate cuts this year, though many also expressed caution amid persistent inflationary pressures.