NZDUSD Turns Cautious Ahead OF RBNZ

Published on Jul 11, 2023 17:15

The New Zealand dollar is descending amid cautious moves on Tuesday ahead of tomorrow`s RBNZ policy decision. Most of the major currencies are staying upbeat today as greenback remains under pressure globally ahead of much awaited US inflation data due on Wednesday. However, kiwi is staying subdued amid expectations that the New Zealand central bank will leave benchmark interest rates steady amid rising growth concerns even as inflation in New Zealand is tracking at 6.7%, well above the central bank`s target band of 1% to 3%. New Zealand slipped into recession as the economy shrank in the first quarter, reducing bets of further interest rates hikes. The cash rate is now at its highest level in 14 years at 5.5%, up 525 basis points since October 2021. NZDUSD is holding near 0.6200, down around half a percent on the day.