- NZD/USD edges higher to around 0.5830 in Thursday’s early European session.
- RBNZ’s Breman said the country could see stronger growth if the Middle East conflict ends soon.
- Iran’s parliamentary speaker stated that the US had breached the terms of the ceasefire deal.
The NZD/USD pair gains ground to near 0.5830 during the Asian trading hours on Thursday. The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) following a hawkish pause from the Reserve Bank of New Zealand (RBNZ).
As widely expected, New Zealand’s central bank decided to hold the Official Cash Rate (OCR) steady at 2.25% at its April policy meeting on Wednesday. RBNZ Governor Anna Breman said during the press conference that higher oil prices are reducing household purchasing power and business profit margins, leading to a cautious “wait and see” stance.
On Thursday, Breman said that the domestic economy could see stronger growth this year if there was a swift resolution to the conflict in the Middle East. She further stated that the previous rate cuts were still providing some stimulus.
Escalating tensions in the Middle East could provide some support to the Greenback as a safe-haven currency. Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, stated on Wednesday that the US had breached the terms of the ceasefire deal. His remarks came after Israel launched a large-scale campaign across Lebanon, killing over 250 people as a result.
US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu stated that the ceasefire between the US and Iran does not include operations against Hezbollah in Lebanon.
