The kiwi dollar was very little impacted by the Reserve Bank of New Zealand (RBNZ) 50 bps rate hike. Economists at ING expect the NZD/USD pair to challenge the 0.60 level.

Rising risks of a recalibration in the hawkish tone at the August meeting

“Despite the RBNZk reiterating its hawkish message about more aggressive rate hikes, we see rising risks of a recalibration in the hawkish tone at the August meeting (or anyway before the end of the year) due to a falling housing market and worsening economic outlook.”

“In any event, NZD/USD should remain driven by external factors for now, and 0.60 might be tested in the coming weeks.”

Also read: RBNZ to hike the OCR by 50bps again at next month's meeting – TDS