Snapshot: NZD/USD is trading at 0.5652, down 0.04% on the day. The Reserve Bank of New Zealand’s hawkish hold, with a split vote signalling future hikes, remains the dominant domestic driver. Today’s focus shifts to US Core PCE data at 08:30 ET.
- RBNZ’s hawkish hold with a split vote points to tightening ahead, contrasting with easing expectations elsewhere.
- Watch for US Core PCE to influence the USD’s broader strength and thus NZD/USD’s downside potential.
Bias into NY: The path of least resistance for NZD/USD remains lower, given the sustained USD strength and the market repricing of RBNZ hikes. A break below 0.5600 would open further downside.