NZD/USD drops 0.5% after RBNZ cuts rates 25bp with dissenting vote

NZD/USD fell sharply by 0.5% (32 pips) to 0.6120 following the Reserve Bank of New Zealand's decision to cut interest rates by 25 basis points, bringing the Official Cash Rate to 4.25%. The decision included a dissenting vote, highlighting internal disagreement about the pace of monetary easing. The RBNZ cited weakening domestic economic conditions and subdued inflation pressures as justification for the cut, while maintaining a dovish bias for future meetings. Market participants had been divided on whether the central bank would cut or hold, making the move somewhat surprising. The presence of dissent suggests some board members favored maintaining rates, potentially limiting further aggressive easing. Technical analysis shows NZD/USD breaking below the 0.6150 support level, with next support at 0.6100. The rate cut reinforces the divergence between RBNZ and other major central banks, particularly the Fed, likely pressuring the kiwi dollar further in coming sessions.