NZD/USD sticks to gains near two-week top, around 0.5800 after RBNZ leaves rates unchanged

Source Fxstreet
  • NZD/USD catches aggressive bids as the US-Iran ceasefire news weighs heavily on the USD.
  • The RBNZ leaves interest rates unchanged, doing little to influence the NZD or spot prices.
  • Traders now look to the RBNZ’s post-meeting press conference for short-term impetuses.

The NZD/USD pair turns positive for the third straight day following a modest Asian session dip to the 0.5700 mark and rallies to a nearly two-week top on Wednesday in reaction to the US-Iran ceasefire news. Spot prices stick to strong intraday gains above the 0.5800 mark and move little following the Reserve Bank of New Zealand (RBNZ) policy decision.

As was widely anticipated, the RBNZ decided to leave the Official Cash Rate (OCR) unadjusted at 2.25% for the second meeting in a row amid uncertainties over the economic and inflation outlook due to the Iran war. The announcement, however, does little to influence the New Zealand Dollar (NZD) or the NZD/USD pair as traders now look to RBNZ Governor Dr. Anna Breman's comments during the post-meeting press conference for some meaningful impetus.

In the meantime, positive geopolitical developments remain supportive of the upbeat market mood, which undermines the US Dollar's (USD) reserve currency status and acts as a tailwind for the NZD/USD pair. US President Donald Trump announced that he will suspend planned military strikes against Iran for two weeks, provided Tehran agrees to an immediate and safe opening of the Strait of Hormuz. Moreover, Iran’s Foreign Minister, Seyed Abbas Araghchi, said in a statement that Tehran will cease its defensive operations if attacks against the country are halted.

Iran’s foreign minister further added that safe passage through the key waterway will be possible for a period of two weeks, triggering a steep decline in Crude Oil prices and easing inflationary concerns. This tempers market bets for a rate hike by the US Federal Reserve (Fed), which, along with the risk-on impulse, continues to weigh on the safe-haven US Dollar (USD) and offers support to the NZD/USD pair.

Economic Indicator

RBNZ Press Conference

Following the Reserve Bank of New Zealand's (RBNZ)monetary policy decision, the Governor gives a press conference explaining the rationale behind the decision. The comments may influence the volatility of the New Zealand Dollar (NZD) and determine a short-term positive or negative trend.

Read more.

Next release: Wed Apr 08, 2026 03:00

Frequency: Irregular

Consensus: -

Previous: -

Source: Reserve Bank of New Zealand

The Reserve Bank of New Zealand (RBNZ) holds monetary policy meetings seven times a year, announcing their decision on interest rates and the economic assessments that influenced their decision. The central bank offers clues on the economic outlook and future policy path, which are of high relevance for the NZD valuation. Positive economic developments and upbeat outlook could lead the RBNZ to tighten the policy by hiking interest rates, which tends to be NZD bullish. The policy announcements are usually followed by Governor Anna Breman's press conference.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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