The Reserve Bank of New Zealand (RBNZ) held monetary policy unchanged. In contrast to other G10 central banks eyeing the start of their respective rate cutting cycles, markets have speculated on an additional rate hike from the RBNZ, but the tone of today's announcement was clearly to the dovish side, suggesting that the current level of policy rate is seen as sufficiently restrictive. 

We expect NZD/USD to decline further over the coming year, with a 12M target at 0.5700.