The post NZD/USD drifts lower as rate hike expectations fade appeared on BitcoinEthereumNews.com.

NZD/USD slipped 0.14% on Tuesday, settling close to 0.5960 in a narrow session. The pair is trading above its key moving averages, but bullish momentum has waned. Since peaking close to 0.6090 in early February, price has pulled back in a series of lower highs while holding above the 0.5940 area, forming a descending wedge The Reserve Bank of New Zealand’s (RBNZ) February hold at 2.25% was widely expected, but Governor Breman’s dovish tone caught markets off guard. Her updated rate track pushed the first potential hike out to late 2026 at the earliest, well behind what traders had priced in, and overnight index swaps softened around eight basis points in response. Market pricing for a September hike has since dropped to about 40% from 68% before the meeting. The policy contrast with the Reserve Bank of Australia (RBA), which raised rates to 3.85% earlier in February, is growing and continues to cap upside potential for the Kiwi. On the US side, consumer confidence improved marginally to 91.2 in February, though the expectations component has now spent 13 consecutive months below the 80 recession-warning threshold. Trump’s new 15% global tariff announcement added a layer of risk-off pressure. Pullback toward the 50-day EMA as Stochastics hit full bear territory The Stochastic Oscillator has crossed bearish and is drifting toward the oversold zone, suggesting near-term downside momentum still has room to extend. A break below 0.5940 would expose the 50-day EMA, while a reclaim of 0.6000 would be the first sign of buyers re-engaging toward the year-to-date high near 0.6090. NZD/USD daily chart New Zealand Dollar FAQs The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank…

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Filed under: News - @ February 25, 2026 12:20 am