Fresh remarks from the Reserve Bank of New Zealand's Breman highlight a continued emphasis on data dependency and policy flexibility as the economy evolves.
• Important to look at all incoming data ahead of the next monetary policy meeting.
• Will maintain a laser focus on the core mandate.
• There is no preset course for monetary policy.
• Keeping a close watch on key indicators, including inflation and GDP.
• The RBNZ has achieved substantial progress toward delivering its mandated functions.
Summary Interpretation:
The comments reinforce a clear message: the RBNZ is committed to a fully data-dependent, flexible policy stance. With no predetermined path for interest rates, policymakers remain focused on monitoring inflation, GDP trends, and other economic signals before making further decisions. The emphasis on maintaining its core mandate, while acknowledging progress already achieved, suggests a balanced tone—neither hawkish nor dovish—but grounded in caution and responsiveness to evolving conditions.
The NZDUSD is coming off its highs which took the price back above its 38.2% retracement of the move down from the July 1 high at 0.57835. Yesterday and today, the price moved above that target, but fell short of other target levels including the natural resistance and swing level at 0.5800, and the falling 100 day moving average at 0.58091. The high price today reached 0.5794, before rotating back to the downside. See earlier post here outlining the technical levels for the NZDUSD
