Anna 
During the early Asian session on Wednesday, the NZD/USD pair maintained its positive momentum, trading near 0.6065 for the third consecutive day. Market participants are closely monitoring the upcoming Reserve Bank of New Zealand (RBNZ) interest rate decision, along with the release of US March Consumer Price Index (CPI) inflation figures and the Federal Open Market Committee (FOMC) Minutes later in the day.
The RBNZ is widely expected to keep the Official Cash Rate (OCR) unchanged at 5.50% for the sixth consecutive meeting. While a rate hold decision is already priced in, investors will pay close attention to the central bank’s tone and any indications regarding the timing of potential rate cuts. The RBNZ remains cautious due to high inflation levels, which could delay signals of imminent rate cuts. Analysts speculate that the RBNZ may prefer to wait for the Federal Reserve (Fed) to cut rates first, which could bolster the New Zealand Dollar and provide support for the NZD/USD pair.
On the US front, the recent US employment report revealed that the economy added more jobs than expected, leading to speculation that the Fed might postpone its easing cycle. Fed Chair Jerome Powell stated that the central bank could consider rate cuts if the US economy continued its current trajectory, emphasizing that the timing of rate cuts would hinge on whether inflation returns to the Fed’s 2% target.
Following the RBNZ monetary policy meeting, market attention will shift to the release of US CPI inflation data and the FOMC Minutes. These events are expected to provide insights into the future inflation and interest rate outlook, influencing the direction of the NZD/USD pair in the near term. Traders will closely monitor these developments for trading opportunities and potential shifts in market sentiment.
