NZD/USD Surges 0.8% Despite RBNZ 50bp Cut on Persistent Inflation Concerns

NZD/USD jumped 0.8% to 0.5680 following the Reserve Bank of New Zealand's 50 basis point rate cut to 3.75%, as lingering inflation concerns offset the dovish monetary policy move. The RBNZ acknowledged persistent price pressures despite easing, with Governor Orr noting inflation remains "uncomfortably high" at 2.8%. Markets interpreted the central bank's cautious tone as limiting scope for aggressive future cuts, supporting the kiwi dollar. EUR/USD gained 0.3% to 1.0565, while GBP/USD rose 0.4% to 1.2480, reflecting broad USD weakness. AUD/USD climbed 0.5% to 0.6320 in sympathy with NZD strength. Technical indicators show NZD/USD breaking above the 0.5650 resistance level, with next targets at 0.5720. The pair's resilience suggests markets are pricing in a slower easing cycle than initially anticipated.