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NZ dollar treads water ahead of central bank rate-cutting actions

NZ dollar treads water ahead of central bank rate-cutting actions

The New Zealand dollar was treading water, awaiting expected central bank rate-cutting action later this week and next.

The kiwi was trading at 66.28 US cents at 5pm in Wellington from 66.30 cents at 7:55am. The trade-weighted index was at 72.92 points from 72.93.

The US Federal Reserve is expected to cut interest rates early Thursday, New Zealand time, by at least 25 basis points. It will be the first cut in more than a decade.

The cut is despite positive earnings reports from a string of household names, including McDonalds, Google, Twitter and Starbucks, and a better-than-expected preliminary US GDP report for the June quarter – it came in at a 2.1 per cent annual pace for the June quarter, down from 3.1 per cent in the March quarter but well above forecasts of 1.8 percent.