New Zealand: Dollar at Over 2-Week Low.

The New Zealand dollar slipped to around $0.583, its lowest level in more than two weeks, weighed by a firmer US dollar and weak domestic data. The greenback extended its gains amid growing expectations that the Federal Reserve may resume its rate-hiking cycle. Meanwhile, domestic economic data pointed to weakening momentum in New Zealand’s economy. The services sector services sector stayed in contraction in April, even with a slight improvement in activity, while manufacturing growth slowed to a seven-month low, as the Middle East energy disruptions weighed on businesses. The Reserve Bank of New Zealand has so far been cautious about tightening policy, as the economy has only recently emerged from recession and still has significant spare capacity. Even so, markets are pricing in around a 40% chance of a rate increase later this month, while a move in July remains fully priced in as higher energy prices fuel inflation concerns.