- NZD/USD trades in positive territory near 0.6108 in Thursday’s Asian session.
- The RBNZ’s hawkish hold has boosted the Kiwi.
- Fed minutes offered the cautious tine, indicating worries over the lack of progress on inflation.
The NZD/USD pair gains momentum around 0.6108 during the Asian trading hours on Thursday. The New Zealand Dollar (NZD) edges higher as the Reserve Bank of New Zealand (RBNZ) kept interest rates steady and signaled the potential delay in interest rate cuts due to headwinds from sticky inflation.
The RBNZ decided to keep the policy rate steady at 5.50% for the seventh meeting in a row at its May meeting on Wednesday. The central bank noted in the statement that “the welcome decline in inflation in part reflects lower inflation for goods and services imported into New Zealand. However, service inflation is receding slowly, and expected policy interest rate cuts continue to be delayed.” The RBNZ added that it expects inflation to ease within its target range by the end of 2024. The hawkish hold of the New Zealand central bank provides some support to the Kiwi and creates a tailwind for the NZD/USD pair.
On the USD’s front, the Federal Reserve (Fed) released the minutes of the April 30-May 1 policy meeting on Wednesday, indicating that inflation in recent months has been a lack of further progress toward the Fed’s 2 percent objective.” Investors continue to adjust their expectations for rate cuts this year, with nearly 60% odds of the first reduction in September, according to the CME FedWatch tool. The attention will shift to the advanced reading of the US Purchasing Managers Index (PMI) for May. In the case of a stronger reading, this might lift the Greenback and cap the pair’s upside in the near term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD bounces off lows, back near 1.1330
EUR/USD meets daily support around the 1.1300 neighbourhood, managing to regain pace and revisit the 1.1330 region. Sentiment turned after President Trump proposed a “straight 50% tariff” on European imports, undermining the pair’s bullish momentum.
GBP/USD eases from tops, revisits the 1.3500 zone
GBP/USD benefits from broad US Dollar weakness, climbing to its highest level since February 2022 past 1.3500 at the end of the week. UK retail sales data surprised to the upside in April, lending extra wings to the quid.
Gold keeps the bullish tone near $3,350
Gold extends its weekly advance, trading around $3,350 per troy ounce on Friday. The rally in XAU/USD is driven by broad-based weakness in the Greenback, particulalry after President Trump’s threat to impose 50% tariffs on European imports.
Apple stock sinks below $200 after Trump threatens more tariffs Premium
Trump grows irate at Apple's move into India. President claims Apple must produce US-sold iPhone in US or face a 25% tariff. US equity futures slip more than 1% in Friday premarket after Trump threatens the EU with a 50% tariff.
Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution
XRP sustains mid-week recovery as XRP/BTC flashes golden cross for the first time since 2017. Large volume holders increase XRP exposure, indicating rising demand and investor confidence.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.