• The New Zealand Dollar rises on positive risk appetite. 
• Risky assets rise on hopes of central banks cutting interest rates. 
• The RBNZ has not committed to cutting rates, however, as inflation remains high despite slow growth.

The New Zealand Dollar (NZD) is trading higher in its most traded pairs on Tuesday as markets adopt a positive risk tone, benefiting commodity currencies like the New Zealand Dollar over safe havens. 

European Stocks are mostly higher on hopes it will not be long before the European Central Bank (ECB) cuts interest rates, thereby cheapening credit.

The German DAX, British FTSE 100, Italian IT40 and Spanish IBEX are all showing gains, with only the French CAC40 down, after data showed a wider-than-expected 5.5% French government budget deficit in 2023, according to data from the statistics office INSEE.