new zealand dollar

AUD/NZD Technical Outlook: Bullish Momentum Supported by Diverging Labour Markets

• RBA steady, RBNZ dovish tilt: Australia’s central bank is expected to hold rates at 3.6%, while New Zealand’s weak labour market raises the odds of a more dovish RBNZ stance.
• Widening yield spreads: The 2-year and 10-year AU/NZ sovereign bond yield spreads are likely to widen further, favouring AUD strength over NZD.
• AUD/NZD strength: The cross pair has gained 5.8% since July 2025, hitting a three-year high of 1.1390, supported by relative macro and yield dynamics.

NZD Steadies After Powell’s Dovish Signal and Strong Retail Sales

The New Zealand dollar has steadied on Monday. In the European session, NZD/USD is trading at 0.562, down 0.07% on the day. On Friday, the New Zealand dollar shot up 0.82%, its best one-day performance since June.

RBNZ Rate Decision in Focus: Market Awaits Forward Guidance on NZD/USD

The Reserve Bank of New Zealand (RBNZ) is expected to cut interest rates by 0.25% this week, bringing the rate to 3%. This would mark a total reduction of 2.5% during the current cycle. Markets are also predicting another cut later this year or early next year, possibly lowering the rate to 2.75% or even 2.5%.

RBNZ Dovish Outlook Weighs on Kiwi, NZD/JPY Risks Further Downside

New Zealand’s central bank (RBNZ) cut its Official Cash Rate (OCR) as expected by 25 basis points (bps) to a three-year low of 3% today.

The major surprise was the RBNZ’s monetary policy guidance that skewed towards a more dovish stance than expected. Its latest forward guidance shows that the average OCR is projected to fall to 2.71% by the end of 2025, lower than the earlier projection of 2.92% made in May.

Global Markets Await Jackson Hole: Bonds Slide, Currencies Diverge, Central Banks in Focus

ile stocks continue to hit new highs, the worldwide sell-off in long-term government bonds is gathering pace. Rates actually rose more in nearly every G10 country than they did in the US last week, which certainly contributed to dollar weakness.

USD: Deepening Equity Market Sell-Off Could Trigger Pick-Up in FX Volatility

The major FX rates have remained relatively stable at the start of this week in contrast to the deepening sell-off in the equity markets. One of the biggest movers yesterday was the Nasdaq composite index which fell sharply by 4.0% and extended its decline since the high in December to almost 14%.