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New Zealand dollar slides as Australia lifts rates

NZD/USD closed below 0.5650, after Australia’s Reserve Bank raised its cash rate to 4.60% in a unanimous vote.

Reported · Written up by our desk · Major Pairs

FXStreet reports the New Zealand dollar weakened on Tuesday, with NZD/USD closing below 0.5650 for the first time in its slide.

The outlet links the move to Australia’s Reserve Bank, which lifted its cash rate to 4.60%, the highest since 2011, in a unanimous decision.

FXStreet adds that the RBA said the economy appears to be slowing and signalled less further tightening than markets had priced, while New Zealand’s Reserve Bank previously raised its Official Cash Rate to 2.75% on September 2 and left the timing of any additional increase highly uncertain.

The report also notes that odds for an October move in New Zealand fell to about 36% after the September meeting, before climbing to roughly 80% for a hike to 3.00% on October 28.

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