- The NZD/USD yields initial profits and remains plane around 0.5950 after the announcement of RBNZ interest rates.
- The RBNZ cuts its OCR in 25 PB to 3.25%, as expected.
- The US dollar wins for hope of a possible commercial agreement between the US and the EU.
The NZD/USD pair renounces most of its initial profits and flattened around 0.5950 during negotiation hours in North America on Wednesday. Earlier in the day, the Kiwi torque attracted offers after the New Zealand Reserve Bank (RBNZ) reduced its official cash (OCR) rate in 25 basic points (PB) to 3.25%, as expected.
The RBNZ guided that the monetary expansion cycle will be deeper than they had previously anticipated, citing global economic risks and that inflation is within the bank’s goal.
Meanwhile, an extension in the American dollar recovery movement (USD) has also weighed on the early gain of the Kiwi torque. The US dollar index (DXY), which tracks the value of the dollar against six main currencies, rises to about 99.80, after the recovery of Tuesday.
The US dollar goes up to hope that the European Union (EU) and the United States (USA) soon reach a commercial agreement. During the negotiation hours in North America, EU officials declared that American commercial negotiators Howard Lutnick and Jameison Greer have agreed to maintain commercial discussions every two days. In addition, a report by the German newspaper Handelsblatt has reported that German car manufacturers are in conversations with the US Ministry of Commerce. Uu on tariffs and seek to reach an agreement for early July.
The NZD/USD strives to break the upward flag formation. Historically, the graphic pattern resumes its strong rally after a rupture of consolidation. The short -term trend of the torque is bullish, since the 20 -day exponential mobile average (EMA) is inclined to rise around 0.5925.
The 14 -day relative force (RSI) index breaks above 60.00. The bulls would go into action if the RSI is maintained above the level of 60.00.
The Kiwi torque is expected to rise towards the minimum of September 11, 0.6100 and the maximum of October 9, 0.6145 after breaking above the maximum Intradica around 0.6030.
In an alternative scenario, a downward movement below the minimum of May 12, 0.5846 will expose it to the round level of 0.5800, followed by the maximum of April 10, 0.5767.
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.
Read more.
Last publication:
MIÉ MAY 28, 2025 02:00
Frequency:
Irregular
Current:
3.25%
Dear:
3.25%
Previous:
3.5%
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.
