The NZD/USD pair remains below the key 0.5900 level following the Reserve Bank of New Zealand’s (RBNZ) cautious tone on monetary policy. Market sentiment turned bearish after the RBNZ highlighted economic risks, including a slower recovery and softening inflation, reinforcing expectations that rate hikes are off the table for now.
The kiwi dollar has struggled to gain momentum, reflecting investor skepticism over the central bank’s dovish stance. Weak domestic data and global risk aversion have further pressured the currency, keeping it near monthly lows. Traders are eyeing U.S. economic updates for additional cues, with the pair’s near-term trajectory likely influenced by broader market sentiment.
