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NZD/USD slides to its lowest since RBNZ rate cut in late 2025
NZD/USD was near 0.5600 as traders weighed a potential third RBNZ hike on Oct. 28, with the Fed’s policy rate held in a 3.75% to 4.00% range.
The New Zealand dollar extended its decline against the US dollar, pushing NZD/USD to its lowest level since the Reserve Bank of New Zealand last cut rates in November 2025, according to FXStreet.
The RBNZ has raised its rate twice since that cut, taking the Official Cash Rate to 2.75%, while traders have built expectations for a possible third hike on Oct. 28. NZD/USD was trading just above 0.5600 and was down for a third consecutive session, FXStreet said.
FXStreet pointed to the policy rate gap between New Zealand and the US narrowing versus the last time the pair traded this low. It attributed part of the move to longer term US borrowing costs, noting the 10-year Treasury yield was at its highest since 2002.
Looking ahead, FXStreet cited US payrolls on Friday at 12:30 GMT as the next scheduled test for NZD/USD, with 90K jobs forecast after August’s 162K. It also highlighted New Zealand’s next release of third-quarter business confidence from the New Zealand Institute of Economic Research (NZIER), due Monday at 21:00 GMT, with the prior reading at 8%.