Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

New Zealand Dollar Jumpy After RBNZ Decision

By MarketPulse (Kenny Fisher)ForexMay 25, 2022 07:06AM ET
New Zealand Dollar Jumpy After RBNZ Decision
By MarketPulse (Kenny Fisher)   |  May 25, 2022 07:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The New Zealand dollar was almost unchanged on Wednesday. NZD/USD posted strong gains in the Asian session, but has surrendered most of those gains.

RBNZ shows hawkish teeth

The Reserve Bank of New Zealand delivered on expectations, with a 0.50% rate hike which brings the cash rate to 2.0%, its highest level since 2016.

The New Zealand dollar dipped ahead of the decision but rallied by over one percent after the rate increase. However, the upswing proved to be brief, as NZD/USD has given up most of those gains.

The rate hike of 0.50% was widely expected, but the markets weren’t sure what to expect from the rate statement. In the end, the statement was quite hawkish, with the RBNZ forecasting that the cash rate will have to increase to 3.4% by the end of 2022 and peak at 3.9% in mid-2023.

Prior to today’s statement, the RBNZ had projected that the cash rate would remain below 3% until mid-2023 and peak at 3.4% in 2024.

In the revised forecast, the RBNZ is giving notice that the cash rate peak will be higher than expected and the pace of tightening will also be faster than previously anticipated.

In follow-up remarks, Governor Orr acknowledged the possibility of a recession but said that the Bank had to curb the growth in demand in order to rein in inflation and keep inflation expectations in check.

The RBNZ has forecast that inflation will peak at 7% in Q2, after a gain of 6.9% in the first quarter. Orr has come out swinging, but it will be a tricky task to aggressively raise rates and slow growth without causing the economy to stall.

NZD/USD Daily Chart
NZD/USD Daily Chart

NZD/USD Technical

  • NZD/USD is testing resistance at 0.6475. Above, there is resistance at 0.6540
  • There is support at 0.6352 and 0.6287

Original Post

New Zealand Dollar Jumpy After RBNZ Decision

Related Articles

Kenny Fisher
Euro Tumbles To 20-Year Low By Kenny Fisher - Jul 05, 2022

The euro enjoyed a quiet Monday, as the currency markets were calm with U.S. markets closed for a holiday. The euro started the Tuesday session without incident, but the roof fell...

Al Brooks
EUR/USD: Bears Break Below 2017 Low By Al Brooks - Jul 05, 2022

    The EUR/USD broke below the 2017 low during the overnight session. This is a bear breakout of the past two months. Bears want a successful bear breakout and measured move down...

New Zealand Dollar Jumpy After RBNZ Decision

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email