FXStreet reports that the RBNZ is widely expected to hike rates at its October 6 meeting, and economists at ING believe this outcome would boost the kiwi.

“Since leaving rates on hold at the August meeting, comments by RBNZ officials have strongly suggested we’ll see a 25bp rate hike this week. In August, a lockdown announcement in New Zealand kept policymakers from pulling the trigger on tightening, now there appears to be no more ‘excuses’ to delay the first hike.” 

“Markets are currently pricing in around 80% probability of a hike, and if the RBNZ delivers as we expect, we could see some moderate support for NZD.”