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NZD/USD stays under pressure after RBNZ inflation expectations cool
Two-year RBNZ inflation expectations eased to 2.3% in Q3 2026, but the NZD remains weighed by a firmer US dollar amid US-Iran geopolitical tensions.
NZD/USD extended losses for a fourth straight day, trading around 0.5840 during Asian hours on Thursday, as it reacted to easing New Zealand inflation expectations reported by the Reserve Bank of New Zealand.
RBNZ inflation expectations on a two-year horizon cooled to 2.34% in Q3 2026 from 2.53% in Q2, while one-year forward inflation projections were reported at 2.6%. The article notes the pair could stabilize if traders shift toward expectations that the RBNZ will deliver another quarter-point rate increase next month.
The decline in NZD/USD also reflected a recovery in the US dollar as geopolitical tensions between the United States and Iran escalated. FXStreet cited an Iranian official saying there was zero progress on reviving the interim deal or setting an implementation timeline, while the Trump administration is described as seeking additional economic pressure, including broader sanctions and a naval blockade aimed at restricting Iranian oil exports.