NZD/USD rises toward 0.6150 after the RBNZ decides to keep OCR unchanged

NZD/USD received support as RBNZ maintained the interest rate at 5.5% as inflation remained elevated.
RBNZ is expected to maintain higher rates for longer as annual CPI remains above the 1-3% target band.
Fed’s Susan Collins stated that progress toward interest rate adjustment will take longer.

Akhtar Faruqui FXStreet

The NZD/USD pair rebounded after two days of losses, trading around 0.6140 during Asian hours on Wednesday following the Reserve Bank of New Zealand's (RBNZ) interest rate decision. The central bank maintained its Official Cash Rate (OCR) at 5.5% for the seventh consecutive meeting as inflation remains elevated, remaining above the 1-3% target band.

In the first quarter, New Zealand's annual Consumer Price Index (CPI) eased to 4.0%, compared to the previous reading of 4.7%. This has marked the lowest figure since the second quarter of 2021. This decline has fueled speculation that the RBNZ might consider rate cuts later in 2024.

In the United States (US), traders await the Minutes of the Federal Open Market Committee (FOMC) meeting held on May 1, seeking clues for the Federal Reserve’s (Fed) policy stance. The central bank maintains a cautious stance regarding inflation and the possibility of rate cuts in 2024.

On Tuesday, Federal Reserve Bank of Boston President Susan Collins spoke at the event of "Central Banking in the Post-Pandemic Financial System". Collins stated that progress toward interest rate adjustment will take longer and emphasized that patience is the right policy for the Fed.

Financial markets anticipate the first interest rate cut will occur in September at the earliest, with two reductions of a quarter percentage point each expected before the end of the year. According to the CME FedWatch Tool, the probability of the Federal Reserve implementing a 25 basis-point rate cut in September has seen a slight uptick to 50.3%, compared to 49.6% a day ago.

NZD/USD

Overview
Today last price	0.6097
Today Daily Change	0.0007
Today Daily Change %	0.11
Today daily open	0.609

Trends
Daily SMA20	0.6014
Daily SMA50	0.6004
Daily SMA100	0.6074
Daily SMA200	0.6041

Levels
Previous Daily High	0.6118
Previous Daily Low	0.6087
Previous Weekly High	0.6146
Previous Weekly Low	0.5995
Previous Monthly High	0.6079
Previous Monthly Low	0.5851
Daily Fibonacci 38.2%	0.6099
Daily Fibonacci 61.8%	0.6106
Daily Pivot Point S1	0.6079
Daily Pivot Point S2	0.6068
Daily Pivot Point S3	0.6049
Daily Pivot Point R1	0.6109
Daily Pivot Point R2	0.6129
Daily Pivot Point R3	0.614

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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