The New Zealand dollar traded at $0.612 amid a softer US dollar, following dovish comments from Chicago Fed President Goolsbee.

On Monday, Goolsbee said that the Federal Reserve might need to consider whether the restrictive policy is putting too much pressure on the economy.

Last Friday, the Kiwi came under pressure after better-than-expected US PMI reports raised concerns that the Federal Reserve would keep interest rates elevated for a longer period, strengthening the greenback.

Domestically, the Reserve Bank of New Zealand forecasted during its last policy meeting in May that it would not start cutting rates until the third quarter of 2025.

However, investors have fully priced in a rate cut in November, with over 130 basis points of easing anticipated by the end of 2025.

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