NZD Struggles Despite RBNZ Hawkish Shift

The New Zealand Dollar (NZD) has been struggling despite the Reserve Bank of New Zealand (RBNZ) taking a hawkish stance. The NZD/USD exchange rate traded around 0.5771 on Tuesday, with no significant changes after falling 0.36% on Monday.

According to BNZ, the currency's rapid recovery 'came to a grinding halt' last week due to higher oil prices and renewed demand for the safe-haven US Dollar. This prevented strong New Zealand inflation data from generating a lasting rally.

The NZD/USD pair has now surrendered more than a cent from its July peak but remains approximately 1.7% higher for the month.