New Zealand Dollar holds steady above 0.5650 as PBOC holds Loan Prime Rates steady

The New Zealand Dollar (NZD) remained stable above 0.5650 against the US Dollar (USD) on Tuesday as traders remained cautious ahead of New Zealand's Consumer Price Index (CPI) inflation data scheduled for Thursday. Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway indicated that the interest rate decision in late October remains uncertain despite rising inflation pressures.

The RBNZ has kept its Official Cash Rate (OCR) at 2.75% following a 25-basis-point increase during the September policy meeting. Traders are eagerly awaiting the upcoming inflation data, which will help determine the direction of interest rates. The CPI is projected to rise by 0.8% quarter-over-quarter (QoQ) in Q3, compared to 1.5% in the previous reading.

A higher-than-expected inflation could strengthen the NZD against the USD. Meanwhile, the People's Bank of China (PBOC) maintained the Loan Prime Rates (LPRs) unchanged in October, with the one-year and five-year LPRs at 3.00% and 3.50%, respectively. Meanwhile, Fed Chairman Kevin Warsh stated during the 2026 IMF annual meetings that he will not speculate on interest-rate decisions, leaving the door open for potential rate hikes or holds at the upcoming October 27-28 meeting.