The New Zealand Dollar breaks lower after Australia's rate hike
Australia's fourth rate hike of 2026 sent the Australian Dollar lower on Tuesday, and NZD/USD closed below 0.5650 for the first time in its slide. The Reserve Bank of Australia (RBA) raised its cash rate to 4.60%, the highest since 2011, in a unanimous vote.
The New Zealand Dollar (NZD) has broken lower after Australia's central bank raised its interest rates for the fourth time in 2026, sending the Australian Dollar (AUD) lower and causing NZD/USD to close below 0.5650 for the first time. The Reserve Bank of Australia (RBA) increased its cash rate to 4.60%, the highest since 2011, while Reserve Bank of New Zealand (RBNZ) raised its Official Cash Rate (OCR) to 2.75% on September 2, signaling uncertainty over further hikes.
The NZD's reaction on October 28 depends on whether the RBNZ signals further hikes, as the currency is currently 1.85 points below Australia's cash rate and a full point under the Federal Reserve's range.
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