The New Zealand Dollar is seeing sharp movement after the Reserve Bank of New Zealand (RBNZ) held the Official Cash Rate at 2.25%, as markets expected.

📉 NZD/USD dropped back toward 0.6000, testing soft support before bouncing slightly.

What’s Driving the Move?

🔹 RBNZ signaled a longer period of accommodative policy 🔹 Inflation slightly above target but expected to ease toward 2% 🔹 Slow economic recovery, cautious household spending 🔹 USD showing weakness near the 97 level

Governor Breman emphasized no rush to hike rates until stronger economic and inflation data appear.

Technical Snapshot:

• RSI (1H & 4H) shows bullish momentum, nearing overbought • 50-period EMA acting as dynamic support • Short-term pullback possible before continuation

⚠️ Watch external drivers closely: • US Dollar strength • US yields • Dairy & commodity prices • China economic data • Global risk sentiment