Why kiwi Is Trending Today?

The Reserve Bank of New Zealand's (RBNZ) Assistant Governor Christian Hawkesby has stated that the hurdle for any further interest rate cuts is high. He believes that the current monetary policy stance is appropriate, given the improving economic outlook and the need to manage inflation expectations. Hawkesby also mentioned that the RBNZ is closely monitoring the housing market and is prepared to intervene if necessary to prevent a bubble.

The Reserve Bank of New Zealand (RBNZ) has been a significant influence on the foreign exchange market recently. The New Zealand dollar, or kiwi, has experienced notable jumps following hawkish signals and decisions from the RBNZ. Market participants are anticipating a potential end to the easing cycle, with some predicting a rate cut in November. However, the kiwi has also shown weakness ahead of the RBNZ's rate decision.

The Reserve Bank of New Zealand (RBNZ) meeting resulted in a dovish outlook, leading to a decline in the Kiwi (NZD) currency. The NZDUSD pair reached key technical levels following this development. In global markets, the UK's Consumer Price Index (CPI) surged to an 18-month high, while UK gilts rose despite the unexpected inflation increase. The RBNZ's dovish guidance, coupled with the UK's inflation data, contributed to a downturn in tech stocks, dragging major indices lower.