NZD/USD Holds Steady After RBNZ Governor Anna Breman's Remarks

The New Zealand Dollar (NZD) has moved little following RBNZ Governor Anna Breman's remarks on monetary policy. In her statement, Breman said that the official cash rate track remains closely aligned with May projections and moving towards a neutral stance is still accommodative.

Earlier this month, the RBNZ hiked the Official Cash Rate (OCR) by 25 basis points to 2.75%, as widely expected. The NZD/USD pair has been trading around 0.5840 during the Asian hours on Wednesday and remains within an ascending channel pattern, indicating a bullish bias.

However, technical analysis suggests that the pair maintains a bearish near-term tone, sitting below the 50-period Exponential Moving Average (EMA) and the nine-period EMA. The 14-day Relative Strength Index (RSI) has retreated towards the low-40s, hinting at building downside momentum.

The NZD/USD pair is hovering around the lower boundary of the ascending channel at 0.5850. A sustained break below this level would confirm a bearish reversal and put downward pressure on the pair to explore regions as low as 0.5580.