Select Language

NZD/USD plummets to six-month low, below mid-0.5700s on RBNZ's dovish 50 bps rate cut

Breaking news

NZD/USD plummets to six-month low, below mid-0.5700s on RBNZ's dovish 50 bps rate cut

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.08 10:14
NZD/USD plummets to six-month low, below mid-0.5700s on RBNZ's dovish 50 bps rate cut

update 2025.10.08 10:14

NZD/USD meets with heavy supply in reaction to the RBNZ's surprise 50 bps rate cut.

The RBNZ said that it remains open to further rate cuts as required to control inflation.

A softer risk tone and some follow-through USD buying also exert pressure on the pair.

The NZD/USD pair attracts aggressive selling for the second straight day on Wednesday and dives to its lowest level since April 11, below mid-0.5700s during the Asian session.

The Reserve Bank of New Zealand (RBNZ) decided to lower the Official Cash Rate (OCR) by 50-basis-points (bps), to 2.50% from 3.00%, compared to the broader market expectations for a 25 bps rate reduction. In the accompanying policy statement, the central bank showed readiness to cut the OCT further as required for inflation to settle sustainably near the 2% target mid-point in the medium term. The surprise jumbo rate cut, along with the dovish outlook, turns out to be a key factor weighing heavily on the New Zealand Dollar (NZD).

Apart from this, a slight deterioration in the global risk sentiment contributes to driving flows away from the perceived riskier Kiwi. The US Dollar (USD), on the other hand, gains positive traction for the third straight day and climbs to its highest level since early September. This further contributes to the NZD/USD pair's steep intraday decline and backs the case for further losses. However, bets that the US Federal Reserve (Fed) will lower borrowing costs two more times this year could act as a headwind for the USD and support spot prices.

Economic Indicator

RBNZ Interest Rate Decision

The Reserve Bank of New Zealand (RBNZ) announces its interest rate decision after each of its seven scheduled annual policy meetings. If the RBNZ is hawkish and sees inflationary pressures rising, it raises the Official Cash Rate (OCR) to bring inflation down. This is positive for the New Zealand Dollar (NZD) since higher interest rates attract more capital inflows. Likewise, if it reaches the view that inflation is too low it lowers the OCR, which tends to weaken NZD.

Read more.

Last release: Wed Oct 08, 2025 01:00

Frequency: Irregular

Actual: 2.5%

Consensus: 2.75%

Previous: 3%

Source: Reserve Bank of New Zealand

The Reserve Bank of New Zealand (RBNZ) holds monetary policy meetings seven times a year, announcing their decision on interest rates and the economic assessments that influenced their decision. The central bank offers clues on the economic outlook and future policy path, which are of high relevance for the NZD valuation. Positive economic developments and upbeat outlook could lead the RBNZ to tighten the policy by hiking interest rates, which tends to be NZD bullish. The policy announcements are usually followed by interim Governor Christian Hawkesby's press conference.


Date

Created

 : 2025.10.08

Update

Last updated

 : 2025.10.08

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

USD/CAD extends losses as weak US Consumer Confidence weighs, BoC and Fed eyed

The Canadian Dollar (CAD) strengthens against the US Dollar (USD) on Tuesday as the Greenback weakens following the latest US Consumer Confidence report. At the time of writing, USD/CAD is trading around 1.3944, extending losses for the second consecutive day and down roughly 0.30%.
New
update2025.10.29 00:32

USD/CHF declines for fourth day as Swiss Franc gains, Fed rate cut expected

USD/CHF trades lower on Tuesday, around 0.7930 at the time of writing, down 0.27% for the day. The pair extends its four-day losing streak as the Swiss Franc (CHF) strengthens amid fading expectations of further monetary easing by the Swiss National Bank (SNB).
New
update2025.10.29 00:13

GBP/USD sinks below 1.33 as UK fiscal woes deepen ahead of budget

The GBP/USD dives more than 0.50% on Tuesday as market participants digested news of the UK's Office for Budget Responsibility (OBR), which plan to cut productivity, leading to a huge hole in the public finances. The pair tumbled below 1.3300 for the first time since mid-October.
New
update2025.10.29 00:07

GBP underperforms versus USD - Scotiabank

Pound Sterling (GBP) is a moderate underperformer on the session so far, falling 0.1% against the US Dollar (USD) at writing after giving up early gains through the upper 1.33s in Asian trade.
New
update2025.10.28 23:24

EUR grinds cautiously higher for fifth day - Scotiabank

The Euro (EUR) is grinding slowly but surely higher, with the support of short-term spreads which are maintaining the recent compression in EZ/US short-term yields, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.10.28 23:23

CAD is little changed on the day - Scotiabank

Spot is little changed.
New
update2025.10.28 23:21

USD mixed to marginally lower - Scotiabank

The US Dollar (USD) is mixed but tracking a little lower overall as the Dollar Index (DXY) continues to drift back from the 99 zone where the index appears to have peaked after its latest run higher, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.10.28 23:19

GBP/JPY slips to one-week low as Yen firms on intervention risk and trade optimism

The British Pound (GBP) fell sharply against the Japanese Yen (JPY) on Tuesday as the Yen strengthened across major peers, recovering from recent weakness tied to Japan's political and fiscal developments.
New
update2025.10.28 23:09

EUR/JPY weakens as Yen rises on US-Japan deal, ECB and BoJ meetings eyed

EUR/JPY weakens on Tuesday, falling 0.50% for the day to around 177.10 at the time of writing, after hitting a multi-year high at 178.23 the previous day, and halting a five-day winning streak.
New
update2025.10.28 22:59

EUR/GBP hits multi-year highs past 0.8760 amid generalised Pound weakness

The Euro accelerated its rally against a weaker British Pound on Tuesday to reach its highest level in two years, and is about to break the November 2023 high at 0.8765 at the time of writing.
New
update2025.10.28 21:45

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel