loader image
MiralFX Broker
New Zealand Dollar Slides as RBNZ Hikes by 25 Basis Points, But Sees Peak in RatesNewsDaily technical analysisNew Zealand Dollar Slides as RBNZ Hikes by 25 Basis Points, But Sees Peak in Rates

New Zealand Dollar Slides as RBNZ Hikes by 25 Basis Points, But Sees Peak in Rates

The New Zealand dollar experienced a decline subsequent to the Reserve Bank of New Zealand’s (RBNZ) decision to increase its benchmark rate by 25 basis points, which was in accordance with anticipated projections, but also indicated that further tightening may not be necessary.

The anticipated 25 basis point increase to 5.5% in the cash rate by the central bank of New Zealand was a lesser adjustment than the 50 basis points change made in April, which was done in response to persistent inflationary pressures. However, the pace of this monetary tightening has decelerated due to the delayed effects of prior rate hikes on economic activity – evidenced by underwhelming macro data in recent months. Furthermore, consensus forecasts for New Zealand’s economic growth this year have declined significantly since April.

NZD/USD 5-minute Chart

NZD/USD 5-minute Chart

There were individuals within the market who anticipated a peak interest rate of 5.75% during this economic cycle due to the decrease in inflation from a three-decade high of 7.3% to 6.7%. Despite the decline in inflation, it remains significantly above the Reserve Bank of New Zealand’s (RBNZ) target band of 1%-3%. Additionally, the job market, along with wage growth, remains robust. Nonetheless, RBNZ’s recognition that interest rates have reached their apex has had a negative impact on the value of NZD.

The current risk sentiment has been overshadowed by the lack of advancement in Washington towards increasing the US government’s debt ceiling, and the reduced anticipation for a Fed rate cut this year following the hawkish comments made by multiple Fed officials. The money markets predict that the Fed will maintain its current interest rates during its upcoming meeting in June, although they have postponed their projection of the first rate cut from mid-2023 to the end of this year.

NZD/USD Daily Chart

The risk-sensitive NZD/USD has pulled back as a result within its well-established range since March, pushing back bullish prospects highlighted in the previous update. See “Is the New Zealand Dollar Turning Corners? Any break below the crucial support at the March low of 0.6085 would negate the optimistic outlook.

The NZD/USD pair has been experiencing a range-bound movement between 0.6085-0.6385 on technical charts since the beginning of March. The width of this pattern suggests that any breakout from this range could potentially result in a 300-pip move, providing a possible price objective.

Visa Card
Bank Transfer
MIRALFX_Artboard 1 (1)
is headquarters at James Street, Kingstown, VC0100 St. Vincent and the Grenadines.


The MiralFX broker is a world pioneer in online trading, offering financial market opportunities to audiences everywhere, regardless of where they are or what their financial goals are.

Contact US

Email: Info@miralfx.com
Tel: +1 784 485 6124
Fax: +1 784 485 6124


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The company does not accept clients from Turkey and United States.

Risk Warning

MiralFX LLC. offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.

MiralFX LLC. does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. MiralFX LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.

This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.

By using MiralFX.com you agree to use our cookies to enhance your experience.

© 2023 MiralFX LLC. All Rights Reserved.