NZD/USD RISES TO NEAR 0.5700 DESPITE DOVISH COMMENTS FROM FINANCE MINISTER WILLIS
NZD/USD RISES TO NEAR 0.5700 DESPITE DOVISH COMMENTS FROM FINANCE MINISTER WILLIS
The NZD/USD pair is trading around 0.5680 in early European hours on Thursday, marking its second consecutive day of gains.
The RBNZ recently reduced its Official Cash Rate (OCR) by 50 basis points (bps) to 3.75%, indicating a dovish stance.
Governor Adrian Orr signaled the possibility of two more 25 bps rate cuts in the upcoming April and May policy meetings.
Finance Minister Nicola Willis stated that the RBNZ has significant scope to cut interest rates further if necessary. This dovish comment adds to market expectations of continued monetary easing.
Despite the dovish monetary policy outlook and comments from Minister Willis, the NZD has shown resilience, trading above the 0.5700 mark.
This suggests that market participants may have already priced in the anticipated rate cuts.
Investors are closely monitoring the RBNZ's future policy decisions and any further comments from government officials, as these will influence the NZD's trajectory in the coming weeks.
