NZD/USD dives back closer to 0.6000 after RBNZ leaves rates unchanged

NZD/USD attracts fresh sellers after the RBNZ decided to leave rates unchanged, as expected.
Traders now look to the post-meeting press conference for cues about the further rate path.
Dovish Fed expectations keep the USD bulls on the defensive and could support spot prices.

Haresh Menghani FXStreet

The NZD/USD pair meets with a fresh supply after the Reserve Bank of New Zealand (RBNZ) announced its policy decision on Wednesday. Spot prices slide back closer to an over one-week low, touched the previous day, with bears now awaiting a break below the 0.6000 psychological mark before positioning for further losses.

The New Zealand Dollar (NZD) weakens after the RBNZ, as was widely expected, decided to hold the Official Cash Rate (OCR) unchanged at 2.25% at the end of the February monetary policy meeting this Wednesday. Following three consecutive rate cuts in 2025, this marks a pause in the current easing cycle, albeit it does little to provide any impetus to the NZD in the absence of a major hawkish shift.

In the accompanying policy statement, the RBNZ signaled that inflation is returning to target and revised its future rate path slightly higher. The central bank added that policy remains accommodative for now, and a gradual normalisation is expected. Traders now look to the post-meeting press conference, where comments from RBNZ Governor, Anna Breman, will influence expectations about the next policy move.

This, in turn, will play a key role in influencing the NZD and the NZD/USD pair. Meanwhile, the US Dollar (USD) struggles to attract buyers amid bets that the US Federal Reserve (Fed) will lower borrowing costs in June and deliver at least two rate cuts in 2026. This, in turn, acts as a tailwind for the currency pair, making it prudent to wait for some follow-through selling before placing fresh bearish bets.

Economic Indicator

RBNZ Press Conference

Following the Reserve Bank of New Zealand's (RBNZ)monetary policy decision, the Governor gives a press conference explaining the rationale behind the decision. The comments may influence the volatility of the New Zealand Dollar (NZD) and determine a short-term positive or negative trend.

Why it matters to traders?

The Reserve Bank of New Zealand (RBNZ) holds monetary policy meetings seven times a year, announcing their decision on interest rates and the economic assessments that influenced their decision. The central bank offers clues on the economic outlook and future policy path, which are of high relevance for the NZD valuation. Positive economic developments and upbeat outlook could lead the RBNZ to tighten the policy by hiking interest rates, which tends to be NZD bullish. The policy announcements are usually followed by Governor Anna Breman's press conference.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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