NZD/USD strengthens above 0.5800 despite rising RBNZ rate cut bets

• NZD/USD trades on a stronger note around 0.5820 in Thursday's early European session. 
• Recent New Zealand GDP figures were weaker than expected, fueling bets of additional policy easing. 
• Traders will closely watch the Fedspeak and the final reading of US Q2 GDP data later on Thursday. 

The NZD/USD pair gains ground near 0.5820, snapping the two-day losing streak during the early European trading hours on Thursday. However, the potential upside for the New Zealand Dollar  (NZD) might be limited amid expectations that the Reserve Bank of New Zealand (RBNZ) might cut rates further before new Governor Anna Breman takes charge on December 1. 

Anna Breman has been appointed the new RBNZ Governor and will begin her role in early December. Acting Governor Christian Hawkesby will preside over the upcoming October and November meetings, where additional rate cuts are likely, as the recent New Zealand Gross Domestic Product (GDP) came in weaker than expected. 

Financial markets are now pricing in an aggressive rate cut before Breman's first meeting in February 2026, with some forecasts suggesting a substantial 50 basis points (bps) reduction at the RBNZ's upcoming meeting next month.

Fed Chair Jerome Powell noted that the US central bank shifts its focus toward supporting employment as signs point to a weakening labor market. Powell further stated that future decisions will depend on incoming economic data, especially concerning inflation and employment trends.

Market reactions were mixed, reflecting different opinions among Fed officials. Traders will take more cues from the Fedspeak later on Thursday for more cues about the future path of monetary policy. Any dovish comments from the Fed policymakers could drag the Greenback lower and create a tailwind for the pair. Also, the final print of the US Gross Domestic Product (GDP) growth for the second quarter (Q2) is due later on the same day.