- The NZD/USD bounces after a four -day loss streak while the US dollar corrects after reaching a new weekly maximum.
- US President Trump announces tariff rates for his 14 commercial partners.
- The RBNZ is expected to maintain interest rates without changes on Wednesday.
The NZD/USD breaks a four -day run and bouncing streak about 0.6035 during the Asian session on Tuesday. The Kiwi pair bounces while the US dollar (USD) corrects on Tuesday after registering a new weekly maximum the day before. The US dollar index (DXY), which follows the value of the dollar against six main currencies, goes back about 97.35.
The corrective movement in the US dollar occurred after the US president Donald Trump announced reciprocal tariffs for 14 countries, remarkably Japan and South Korea, which are key commercial partners of Washington. Trump imposes 25% tariffs on Japan and South Korea.
Meanwhile, the White House has extended the date of imposition of tariffs to August 1 from July 9 previously announced, allowing commercial partners to renegotiate trade agreements.
In New Zealand (NZ), investors expect the decision on the interest rates of the New Zealand Reserve Bank (RBNZ), which will be announced on Wednesday. The RBNZ is expected to announce a pause and maintain its official cash (OCR) rate at 3.25%. The Central Bank of NZ has reduced its OCR by 225 basic points (PBS) in its monetary expansion cycle, which began in August 2024.
The NZD/USD decreases dramatically after facing strong sales pressure near the critical resistance around June 16 at 0.6090, forming a graphic double roof pattern. The torque struggles to return above the exponential mobile (EMA) average of 20 days around 0.6033, which suggests a low -term bearish trend.
The 14-day relative force (RSI) index oscillates within the range of 40.00-60.00, indicating a lateral trend.
The NZD/USD renews its weekly maximum about 0.6065 on Thursday. The Kiwi torque is quoted above the 20 -day exponential (EMA) mobile average, which is about 0.6007, suggesting that the short -term trend is upward.
The 14 -day relative force index (RSI) is approaching the 60.00 level. A new bullish impulse would arise if the RSI manages to break above that level.
Facing the future, a downward movement below the minimum of June 23, 0.5883 will expose it to a minimum of May 12, 0.5846, followed by the round level support of 0.5800.
In an alternative scenario, the Kiwi torque could rise to the minimum of September 11, 0.6100 and the maximum of October 9, 0.6145 if it manages to break above the maximum of June 19, 0.6040.
GRAPH DIARY NZD/USD
Economic indicator
RBNZ interest rates
He New Zealand Reserve Bank (RBNZ) announces its decision on the interest rate after each of its seven annual policy meetings. If the RBNZ adopts a hard line posture and observes that inflationary pressures are increasing, the official cash (OCR) rate increases to reduce inflation. This is positive for the New Zealand dollar (NZD), since higher interest rates attract more capital tickets. Similarly, if it concludes that inflation is too low, it reduces OCR, which tends to weaken the NZD.
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Next publication:
LIÉ JUL 09, 2025 02:00
Frequency:
Irregular
Dear:
3.25%
Previous:
3.25%
Fountain:
Reserve Bank of New Zealand
The New Zealand Bank Reserve (RBNZ) celebrates monetary policy meetings seven times a year, announcing its decision on interest rates and economic evaluations that influenced their decision. The Central Bank offers clues about economic perspectives and the future path of politics, which are of high relevance for the assessment of the NZD. Positive economic developments and an optimistic perspective could lead the RBNZ to harden policy by increasing interest rates, which tends to be bullish for the NZD. Policy ads are usually followed by the press conference of interim governor Christian Hawkesby.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
