The New Zealand dollar appreciated past $0.60, rebounding from four-month lows as the US dollar weakened on firm expectations that the Federal Reserve will start cutting interest rates this year, despite mixed signals from US policymakers.
Investors now look forward to a key US monthly jobs report later this week that could guide the rates outlook further.
Domestically, Reserve Bank of New Zealand Governor Adrian Orr said earlier this week that the central bank remains laser-focused on its job to control inflation.
He added that the central bank is on track to get inflation back within the target band.
Markets are currently betting that the RBNZ will start cutting rates in August amid easing inflation and a surprise economic contraction in the fourth quarter which put the country into a technical recession.
