NZD/USD withdrawal on Tuesday and extends consolidation below 0.5840 to act near 0.5810 at the time of writing. Market participants are turning their attention to the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision on Wednesday.
The New Zealand central bank is expected to be widely reduced its official cash price (OCR), currently at 3%, to support a weakened economy. However, the markets remain divided between a reduction of 25 basic point to 2.75% and a more aggressive 50-point move to 2.50%. The move would be the eighth rate cut since August 2024.
According to the Brown Brothers Harriman, “0.9% GDP collection in the second quarter leaves range for RBNZ to cut off front load.” RBNZ had already stated in September that “there is the possibility of lowering the official cash percentage further.”
Commerzbank also considers a 25-base point cut as the most likely scenario, which adds that “the market has already priced in this decision” and that “the New Zealand dollar (NZD) will therefore unlikely to respond strongly.” However, the bank notes that sustained weak growth and recent signs of cooling inflation are likely to cause RBNZ to continue its easing cycle in the coming months.
Meanwhile, the US dollar (USD) remains firm, supported by political and fiscal uncertainty in France and Japan, which weighs on the euro (EUR) and the Japanese Yen (JPY). Investors are still sure that the US Federal Reserve (Fed) delivers rate cuts in October and December, which nevertheless limits Greenback’s upside potential.
New Zealand dollar price today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed larger currencies today. New Zealand Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | Cad | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.36% | 0.30% | 0.53% | -0.01% | 0.32% | 0.57% | 0.19% | |
| EUR | -0.36% | -0.05% | 0.19% | -0.36% | -0.00% | 0.22% | -0.03% | |
| GBP | -0.30% | 0.05% | 0.24% | -0.31% | 0.09% | 0.23% | 0.01% | |
| JPY | -0.53% | -0.19% | -0.24% | -0.54% | -0.18% | -0.06% | -0.37% | |
| Cad | 0.01% | 0.36% | 0.31% | 0.54% | 0.32% | 0.54% | 0.33% | |
| Aud | -0.32% | 0.00% | -0.09% | 0.18% | -0.32% | 0.09% | -0.07% | |
| NZD | -0.57% | -0.22% | -0.23% | 0.06% | -0.54% | -0.09% | -0.30% | |
| CHF | -0.19% | 0.03% | -0.01% | 0.37% | -0.33% | 0.07% | 0.30% |
The heating card shows percentage changes to larger currencies against each other. The base currency is selected from the left column while the quote currency is selected from the top row. For example, if you choose the New Zealand dollar from the left column and move along the horizontal line to the US dollar, the percentage change represents the box, NZD (Base)/USD (Quote).