The Reserve Bank of New Zealand’s signal for earlier and larger rate hikes lifts NZD/USD, but resistance at the 200-SMA limits upside.
The NZD/USD pair climbed to 0.5875-0.5880 during Wednesday’s Asian session after the Reserve Bank of New Zealand (RBNZ) maintained its Official Cash Rate at 2.25% but adopted a hawkish stance. The central bank indicated rate increases may come sooner and be larger than previously projected, bolstering the New Zealand Dollar (NZD).
This marks the third consecutive meeting the RBNZ has held rates steady, aligning with market expectations. However, the shift in tone contrasts with February’s guidance, adding upward pressure on the currency. The US Dollar (USD) remains supported by geopolitical risks, capping further NZD gains.
Technically, the pair faces resistance at the 200-period Simple Moving Average (SMA) on the 4-hour chart, currently near 0.5890. Momentum indicators suggest easing downside pressure but no clear bullish reversal, leaving the near-term bias mildly bearish below 0.5900.