NZD Surges as RBNZ Signals Hawkish Stance

The New Zealand Dollar (NZD) surged to near 0.5960 on Friday, driven by the Reserve Bank of New Zealand's hawkish tone and hotter-than-expected inflation data.

The RBNZ is expected to raise interest rates by 25 basis points in September, with a target of around 3.5% peak interest rate. However, some analysts are skeptical about the bank's ability to deliver full tightening, citing recent labor market data that shows increased economic slack.

The NZD/USD pair remains bullish above the 100-day simple moving average, but technical indicators suggest that upside momentum may be losing steam.