NZD battered with New Zealand back in strict nationwide lockdown ahead of RBNZ rate decision

NZD is under pressure today and has depreciated by about 1.5% on the day versus the US dollar, taking NZDUSD back under 0.7000 and into the low 0.6900s. A new strict nationwide lockdown in New Zealand after a Covid-19 infection was found has complicated things for the RBNZ, who were expected to hike interest rates by 25bps at tomorrow’s meeting. NZD is likely to be highly volatile depending on whether they decide to go ahead with the 25bps hike or not and depending on the bank’s forward guidance.

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0:15 NZD/USD