NZD/USD hit its lowest level since October 15 after the RBNZ held rates at 2.75%, defying market expectations of a near-certain rate increase.
The NZD/USD pair experienced a sharp decline, breaking below the 0.5600 support level for the first time since October 15, following the Reserve Bank of New Zealand's (RBNZ) decision to maintain interest rates at 2.75%. This move triggered a sell-off because the market had heavily priced in a near 90% probability of a rate hike, leading to disappointment and a repricing of expectations.
The pair fell because the RBNZ kept rates at 2.75% despite market participants having priced in a 90% chance of a rate increase.
The pair had not traded below 0.5600 since October 15.
The New Zealand Dollar dropped below the 0.5600 threshold against the US Dollar following the Reserve Bank of New Zealand's decision to maintain interest rates at 2.75%. Markets had priced in a 90% probability of a rate hike, leading to a sharp bearish reaction in the currency pair.
The pair fell because the RBNZ held interest rates at 2.75%, disappointing investors who had priced in a 90% chance of a rate increase.