• NZD/USD rose higher on Wednesday after the Reserve Bank of New Zealand kept the OCR unchanged at 2.25%, in line with expectations.
•New Zealand’s central bank held rates at 2.25% for a second meeting, assessing Middle East war risks while signaling readiness to act if inflation rises.
• The Reserve Bank of New Zealand signaled expectations of higher inflation, though noted the economic recovery could face headwinds.
• The pause comes after an aggressive easing campaign, with the RBNZ cutting rates by 325 basis points since August 2024 as inflation cooled and economic growth faltered..
• Donald Trump set a new deadline for Iran to reopen the Strait of Hormuz, warning of strikes on key infrastructure, including power plants, if it fails to comply.
•RBNZ Governor Anna Breman said the bank did not seriously consider a rate hike at this meeting, though it discussed whether earlier tightening could reduce the need for more hikes if inflation rises.
• Immediate resistance is located at 0.5827(50%fib), any close above will push the pair towards 0.5898(Higher BB).
•Support is seen at 0.5788(SMA 20) and break below could take the pair towards 0.57181(38.2%fib).
Recommendation: Good to buy around 0.5800 with stop loss of 0.5680and target price of 0.5880
