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NZD/USD rises near 0.5960 as RBNZ stays hawkish
NZD strength follows hotter-than-expected Q2 New Zealand CPI, which is reinforcing expectations for a 25 bps RBNZ rate hike in September and further tightening signals.
NZD/USD firmed to around 0.5960 during Asian trading on Friday, supported by a hawkish tone from the Reserve Bank of New Zealand, according to FXStreet.
The outlet cited hotter-than-expected Q2 New Zealand CPI inflation, which has strengthened expectations for a 25 basis point RBNZ hike in September. BNZ analysts expect the Official Cash Rate to rise by 25 bps to 2.75% in September, with market pricing around a 94% probability of that move.
FXStreet added that traders are also looking ahead to Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium, where any hawkish comments could support the US dollar and weigh on the NZD/USD pair in the near term.
In technical terms, FXStreet said NZD/USD is maintaining a bullish near term bias above the 100-day simple moving average, while immediate resistance sits near the Bollinger Bands’ upper band around 0.5990.