NZD/USD: All eyes on RBNZ guidance and new Governor Breman's debut

💡 DMK Insight

The RBNZ’s likely decision to hold the OCR at 2.25% is a crucial moment for traders. With a 99% probability of no change, the focus shifts to the accompanying statement for hints on future policy direction. If the RBNZ signals a dovish stance, we could see the NZD weaken against major currencies, especially if inflation data remains subdued. Traders should monitor the NZD/USD pair closely, as any shift in sentiment could trigger volatility. Additionally, keep an eye on related markets like Australian dollar pairs, as they often react to RBNZ decisions. The broader context shows a cautious global economic outlook, which could influence the RBNZ’s future decisions. If they hint at potential cuts down the line, expect a bearish reaction in the NZD. Watch for the RBNZ’s language on economic growth and inflation expectations, as these will be key indicators for future trading strategies. A dovish tone could lead to a test of support levels around 0.60 in NZD/USD, while a more hawkish outlook might stabilize the currency in the short term.