The kiwi shows that a 50 basis point rate hike is no guarantee of currency gains. Economists at Westpac expect near-term correction to continue towards 0.67.

RBNZ hiked the OCR by 50bp, which was 75% priced in

“NZD/USD continues to correct lower, targeting 0.67 next.”

“Multi-month, we retain our bullish outlook, targeting 0.72 during H2, with commodities expected to be a major driver.”

“The RBNZ MPR on Tuesday hiked the OCR by 50bp, which was 75% priced in. However, it also emphasized that the forecast peak of 3.35% had not changed. Markets, which had priced a peak of 4.20%, quickly recalibrated, and that pushed the NZD lower.”