NZD/USD Falls as Dovish RBNZ Holds OCR at 2.25%, Signals Delayed Hike

NZD/USD declined during the Asia-Pacific session as the Reserve Bank of New Zealand maintained its Official Cash Rate at 2.25% while delivering a dovish policy outlook. The RBNZ noted that inflation is falling toward its target range as the economic recovery slowly builds, keeping an accommodative stance intact. Deputy Governor Breman flagged the possibility of a year-end rate hike but emphasized that policy remains supportive for now, with the central bank bringing forward the implied timing of its first rate increase. In other regional developments, USD/INR held steady as elevated US Treasury yields continued to support the dollar, while the RBI's intervention offered a potential cap on upside. Japan announced US investment projects totaling $33 billion in gas-powered data center infrastructure, underscoring deepening trade ties. Westpac analysts warned that China must pivot to proactive fiscal policy in 2026 to sustain growth momentum. Traders should monitor upcoming New Zealand economic data and RBNZ commentary for further directional cues on NZD pairs.