The New Zealand dollar, paired with the US dollar, is retreating. The current NZDUSD exchange rate stands at 0.6099.
The NZD is declining due to technical reasons – the Kiwi dollar looks overbought – and ahead of the Reserve Bank of New Zealand meeting scheduled for Wednesday.
The regulator is expected to keep the interest rate unchanged at 5.5% per annum for the seventh consecutive time. Investors will focus on the comments. The market will look for indications of a potential premature interest rate reduction, that is, earlier than in the mid-2025 timing stated in official documents.
Last week’s statistics confirmed a reduction in two-year inflation expectations to a three-year low in Q2, intensifying market expectations that the RBNZ might consider the possibility of monetary policy easing later this year.
Source: Roboforex