Forex News: NZ Dollar Slides After RBNZ Governor Breman Comments

NZ Dollar Slides After RBNZ Governor Breman Comments

(RTTNews) - The New Zealand dollar weakened against other major currencies in the European session on Wednesday, after the dovish comments by the Reserve Bank of New Zealand (RBNZ) Governor Anna Breman.

The RBNZ Governor Breman said that "the first quarter measures of core inflation have remained stable within the target band of 1-3%."

"The Monetary Policy Committee continues to keep a close watch on developments in the Middle East and incoming data," she further noted.

At its most recent monetary policy meeting in April, New Zealand's central bank maintained the official cash rate at 2.25%, but it stated that it was weighing the costs of needlessly restricting the economy against the possible advantages of taking preventative action against the likelihood of rising medium-term inflation.

Reports suggested that Iran will likely file a revised proposal for ending the war to Pakistani mediators in the coming days.

Investors also awaited cues from big tech earnings and Jerome Powell's final FOMC meeting as Fed chair.

The Fed is widely expected to keep interest rates steady later today due to lack of data confirming an inflationary shock.

Gold edged lower in Asian trading, drifting to around $4,570 an ounce.

In the European trading today, the NZ dollar fell to a 13-year low of 1.2230 against the Australian dollar, from an early high of 1.2178. On the downside, 1.23 is seen as the next support level for the kiwi.

Data from the Australian Bureau of Statistics showed that Australia's consumer prices inflation accelerated at the fastest pace since 2023, driven by increases in housing and transport costs. Consumer prices increased 4.6 percent on a yearly basis in March, marking the strongest inflation since September 2023.

Although inflation accelerated from 3.7 percent seen in February, it remained below the economists' forecast of 4.8 percent.

On a monthly basis, consumer prices grew 1.1 percent as a 32.8 percent surge in automotive fuel prices led to a 9.2 percent rise in transport costs.

Against the U.S. dollar, the yen and the euro, the kiwi dropped to 2-day lows of 0.5857, 93.48 and 1.9991 from early highs of 0.5892, 94.01 and 1.9884, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.57 against the greenback, 91.00 against the yen and 2.01 against the euro.

Looking ahead, U.S. MBA mortgage approvals data, Germany CI data for April, U.S. building permits for February, durable goods orders for March, housing starts for February, retail and wholesale inventories for March and U.S. EIA weekly crude oil data are slated for release in the New York session.

At 9:45 am ET, the Bank of Canada (BoC) will announce its interest rate decision. The central bank is widely expected to keep its monetary policy rate unchanged at 2.25 percent for its fourth consecutive meeting.

Forty-five minutes later, the BoC Governor, Tiff Macklem is scheduled to conduct a press conference.

At 2:00 pm ET, the Federal Reserve is set to deliver its latest interest rate decision. The Federal Open Market Committee (FOMC) is widely expected to keep the benchmark federal funds rate unchanged in the 3.5-3.75 per cent range, marking a third straight meeting without a move.

Half-an-hour later, the Fed Chair Jerome Powell will likely hold his last official press conference.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Market News provided by RTTNews