NZD/USD dives back closer to 0.6000 after RBNZ leaves rates unchanged

• NZD/USD attracts fresh sellers after the RBNZ decided to leave rates unchanged, as expected,
• Traders now look to the post-meeting press conference for cues about the further rate path.
• Dovish Fed expectations keep the USD bulls on the defensive and could support spot prices.

The NZD/USD pair meets with a fresh supply after the Reserve Bank of New Zealand (RBNZ) announced its policy decision on Wednesday. Spot prices slide back closer to an over one-week low, touched the previous day, with bears now awaiting a break below the 0.600 psychological mark before positioning for further losses.

The New Zealand Dollar (NZD) weakens after the RBNZ, as was widely expected, decided to hold the Official Cash Rate (OCR) unchanged at 2.25% at the end of the February monetary policy meeting this Wednesday. Following three consecutive rate cuts in 2025, this marks a pause in the current easing cycle, albeit it does little to provide any impetus to the NZD in the absence of a major hawkish shift.

In the accompanying policy statement, the RBNZ signaled that inflation is returning to target and revised its future rate path slightly higher. The central bank added that policy remains accommodative for now, and a gradual normalisation is expected. Traders now look to the post-meeting press conference, where comments from RBNZ Governor, Anna Breman, will influence expectations about the next policy move.

This, in turn, will play a key role in influencing the NZD and the NZD/USD pair. Meanwhile, the US Dollar (USD) struggles to attract buyers amid bets that the US Federal Reserve (Fed) will lower borrowing costs in June and deliver at least two rate cuts in 2026. This, in turn, acts as a tailwind for the currency pair, making it prudent to wait for some follow-through selling before placing fresh bearish bets.