NZD/USD's rebound approaches 0.5800 amid US Dollar's weakness

• The New Zealand Dollar trims gains and approaches 0.5800 after bouncing at 5-month lows of 0.5755
• The US Dollar depreciates across the board with markets bracing for a US government shutdown.
• Hopes of further RBNZ easing in the near-term are keeping Kiwi's rallies limited.

The New Zealand Dollar trimmed some losses on Monday and reached prices right below 0.5800, after bouncing at 0.5755 on Friday. The US Dollar's weakness due to concerns about a potential US government shutdown has provided some support to the Kiwi.

Investors are selling US Dollars, on growing concerns that the US administration will be unable to keep the government going beyond Tuesday, which is the last day of the 2025 fiscal year.

US Dollar falters with US government's shutdown looming

Trump has scheduled a meeting with congressional leaders later on Monday to avert the federal government's closure, but the positions of the two major parties remain far apart. The US President deemed the Democrats' demands as "totally unreasonable" last week, and the odds for a last-minute deal seem remote.

Also on Monday, Cleveland Fed President Beth Hammack affirmed on a CNBC interview that the Fed should maintain a restrictive monetary policy amid the upside risks to inflation while warning about the negative impact on the GDP from a potential shutdown.

The New Zealand Dollar, on the other hand, maintains its broader bearish trend in play, with investors anticipating further RBNZ monetary easing. The central bank announced that Dr Anna Brennan, Deputy Governor of the Swedish Central Bank, will be the next Governor of the Reserve Bank of New Zealand from December 1 onwards, but a rate cut before that date is not ruled out.