{"id":20957,"date":"2025-04-17T04:55:56","date_gmt":"2025-04-17T04:55:56","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20957"},"modified":"2025-04-17T04:55:56","modified_gmt":"2025-04-17T04:55:56","slug":"nzd-dips-despite-strong-cpi-rate-cuts-in-focus","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/nzd-dips-despite-strong-cpi-rate-cuts-in-focus\/","title":{"rendered":"NZD Dips Despite Strong CPI\u2014Rate Cuts in Focus"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/download-2-1024x559.png\" alt=\"\" class=\"wp-image-20958\"\/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Kiwi (NZDUSD) <\/strong>weakens, dipping to <strong>0.59110<\/strong> after hovering around <strong>0.59331<\/strong> at the open.<\/li>\n\n\n\n<li>The <strong>NZD\/USD<\/strong> is under pressure despite <strong>new CPI of 2.5% still comfortably within the RBNZ 1\u20133%<\/strong> <strong>target range<\/strong>.<\/li>\n\n\n\n<li>Market outlook remains uncertain as traders continue to brace for upcoming U.S. Federal Reserve actions.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">NZD\/USD Drops as Inflation Data Fails to Influence Market Expectations<\/h2>\n\n\n\n<p>The <strong>New Zealand dollar (NZD\/USD)<\/strong> lost ground, slipping to <strong>0.59110<\/strong> from an earlier high of <strong>0.59432<\/strong>, marking a retreat after six consecutive days of gains. Despite <a href=\"https:\/\/www.stats.govt.nz\/indicators\/consumers-price-index-cpi\/\" target=\"_blank\" rel=\"noopener\" title=\"\">New Zealand&#8217;s annual inflation rate<\/a> ticking up to <strong>2.5%<\/strong>, slightly exceeding expectations, the data didn\u2019t alter market sentiment, which remains focused on the outlook for <strong>interest rates<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">New Zealand\u2019s annual inflation accelerated for the first time in almost three years <a href=\"https:\/\/t.co\/jKNaanEvFW\">https:\/\/t.co\/jKNaanEvFW<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1912642476499742773?ref_src=twsrc%5Etfw\">April 16, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>While inflation is still within the <strong>Reserve Bank of New Zealand\u2019s (RBNZ)<\/strong> target range of <strong>1\u20133%<\/strong>, the RBNZ is expected to proceed with <a href=\"https:\/\/www.msn.com\/en-us\/money\/markets\/new-zealand-central-bank-cuts-rates-keeps-door-open-to-more\/ar-AA1CyV5A?ocid=BingNewsSerp\" target=\"_blank\" rel=\"noopener\" title=\"\">rate cuts<\/a>, with markets pricing in another <strong>25bps cut<\/strong> at the May policy meeting. Expectations are that the <strong>RBNZ<\/strong> will continue its dovish stance, potentially bringing the benchmark rate to <strong>2.75%<\/strong> by the end of 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">The Dollar\u2019s Strengthing Pushes NZD Lower<\/h2>\n\n\n\n<p>The <strong>New Zealand dollar<\/strong> faces additional headwinds from a stronger <strong>U.S. dollar<\/strong>, especially following comments from <strong><a href=\"https:\/\/www.nytimes.com\/2025\/04\/16\/business\/economy\/jerome-powell-federal-reserve-inflation-interest-rates.html\" target=\"_blank\" rel=\"noopener\" title=\"\">Federal Reserve Chairman Jerome Powell<\/a><\/strong>, who signaled a cautious approach on <strong>interest rate cuts<\/strong>, suggesting that the Fed would wait for more data before making significant moves. This provided support for the <strong>USD<\/strong>, resulting in further weakness for the <strong>NZD\/USD<\/strong> pair.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Outlook<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"451\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/17.4_2-1024x451.jpg\" alt=\"\" class=\"wp-image-20959\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: NZDUSD pulls back from 0.59432, testing support at 0.58856, as seen on the&nbsp;<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p><strong>NZDUSD <\/strong>decreased by <strong>0.37<\/strong>%, closing at <strong>0.59110 <\/strong>after opening at <strong>0.59331<\/strong>. The pair experienced a steady decline, reaching a low of 0.59078 before recovering slightly to close near <strong>0.59110<\/strong>.<\/p>\n\n\n\n<p>The moving averages (MA 5,10,30) suggest a bearish trend, with the shorter-term moving averages crossing below the longer-term ones. This indicates a potential for further downside movement. The MACD (12,26,9) also confirms this, showing a negative histogram as the MACD line (blue) remains below the signal line (yellow).<\/p>\n\n\n\n<p>Key levels to monitor include <strong>0.59432 <\/strong>as immediate resistance and <strong>0.58856 <\/strong>as support. A break below support could signal a continuation of the downtrend, while a rebound above resistance could suggest a potential reversal.<\/p>\n\n\n\n<p>NZDUSD is currently facing downward pressure, with the price dipping below key support levels. A sustained move below <strong>0.58856 <\/strong>could signal further declines, while a move above <strong>0.59432 <\/strong>may indicate a shift toward a more bullish trend. Traders should watch for broader market developments for further confirmation.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>&nbsp;now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NZD slips to 0.59110 amid stronger-than-expected inflation data and market expectations for further rate cuts by the Reserve Bank of New Zealand. -vtmarkets.com<\/p>\n","protected":false},"author":66,"featured_media":20958,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[10,72],"class_list":["post-20957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-forex","tag-kiwi"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/20957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=20957"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/20957\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/20958"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=20957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=20957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=20957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}