NZD Sinking as RBNZ Preps 50bps Cut

The Reserve Bank of New Zealand (RBNZ) is widely expected to slash the Official Cash Rate by 50 basis points this Wednesday, a move that's adding pressure on the New Zealand dollar.

A Reuters survey of 28 economists reveals that 60% anticipate the central bank will deliver a half-point cut, while market pricing suggests near-certainty of such a decision. Major banks—ANZ, ASB, BNZ, Kiwibank, and Westpac—are all forecasting a similar outcome.

The kiwi has fallen to $0.611, down 3.33% since last Monday, extending its decline into a key technical zone, marked by the 50-, 100-, and 200-day moving averages, as well as the 50% retracement level from the July rally.

Meanwhile, escalating tensions in the Middle East are further driving investors into the safe-haven U.S. dollar.