NZD/USD falls to near 0.5850 as RBNZ delivers a quarter basis point rate cut

• NZD/USD struggles as the RBNZ announced a 25 basis point rate cut, bringing the Official Cash Rate (OCR) to 3%.
• The People's Bank of China left its one- and five-year Loan Prime Rates unchanged at 3.00% and 3.50%, respectively.
• White House press secretary Karoline Leavitt said plans are underway for a bilateral meeting between Putin and Zelenskyy.

NZD/USD extends its losses for the third successive session, trading around 0.5850 during the Asian hours on Wednesday. The pair depreciates following the interest rate decision by the Reserve Bank of New Zealand (RBNZ). The central bank decided to cut interest rates by 25 basis points, bringing the Official Cash Rate (OCR) to 3%, as expected.

The People's Bank of China (PBOC) announced to leave its one- and five-year Loan Prime Rates (LPRs) unchanged at 3.00% and 3.50%, respectively. It is noteworthy that any change in Chinese monetary policy could impact the New Zealand Dollar (NZD) as China and New Zealand are close trading partners.

The NZD/USD pair faces challenges as the US Dollar (USD) extends its gains amid geopolitical developments. White House press secretary Karoline Leavitt said on Tuesday that plans for a bilateral meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy are now underway, per CNN.

US President Donald Trump said on Tuesday that there won't be American troops on the ground to help enforce a potential peace deal in Ukraine. The terms of security guarantees are still being negotiated between the US, European partners, and Ukraine.

Traders await the Jackson Hole Economic Policy Symposium, with Fed Chair Jerome Powell's speech for guidance on a September policy decision. CME's FedWatch tool suggests that markets are pricing in 86.5% odds of a 25 basis point Fed rate cut in September.