Kiwi Dollar tries to fly despite RBNZ’s wait-and-see approach
The Reserve Bank of New Zealand left its key rate unchanged for the second time at 5.5%. Most analysts predicted this decision, but it created positive momentum in the NZDUSD, which at one point added about 1% to the day's lows set before publication.
The RBNZ's mood has clearly shifted from raising the rate to keeping it at the current restrictive level for an extended period of time. The Central Bank notes a decline in activity in the sectors most sensitive to interest rates. In addition, they emphasise the reduction of labour shortage due to migrants and softening demand.
The positive reaction of the currency market to the Central Bank's comments has a chance to be the starting point for a corrective recovery or even the beginning of the growth of NZD, which by mid-August was at historic lows against CHF and multi-year lows against EUR & GBP.
NZDUSD lost about 7.4% in about a month, and the intraday dip was at its lowest since last November at 0.5930. On the daily timeframes, the RSI flirted with oversold territory the day before, which hasn't been seen since October 2022. A rise out of this area is a bullish signal, which was also well worked out by NZDUSD, adding over 15% in the last two months.
By the FxPro Analyst Team
US Payrolls in Focus as Wall Street Rout and Falling Yields Cap the Dollar | 6th November, 2026
Democratic Sweep Weakens the US Dollar and Lifts Precious Metals | 5th November, 2026
US Midterm Results Weigh on the Dollar as Central Bank Policy Divergence Builds | 4th November, 2026
Weak NZ Jobs Data Keeps NZDUSD Under Pressure
Dollar Firms and Oil Rebounds Ahead of Fed Decision
What to Expect from the RBNZ, BoC and Fed
Weak Tech Earnings Pressure the US Dollar as Central Bank Divergence Shapes Forex Markets | 23rd October, 2026
