FXStreet says that the Reserve Bank of New Zealand (RBNZ) is likely to keep all policy settings unchanged and analysts at TD Securities see a similarly neutral reaction in the kiwi.

“We expect the MPC to keep all policy settings unchanged. Specifically, that means the OCR will remain at 0.25%, LSAP to total NZ$100b through August 2022, and for the FLP commitment to stay intact.”

“We anticipate a neutral statement. We expect the Bank to reiterate the need for ‘considerable time and patience’ to meet its inflation/employment goals and for it to be open to deploy negative interest rates if necessary. Market reaction should prove similarly neutral.” 

“In our base case, we look for NZD/USD to hold steady and track broader market direction overall. A hawkish surprise could see the NZD/USD pair test resistance around the 0.7105 mark, but we see this as quite unlikely. A dovish outcome could see the kiwi lower toward 0.6965.”