NZD/USD slides to two-year low, closer to mid-0.5700s amid divergent RBNZ-Fed expectations – FXStreet

The New Zealand Dollar (NZD) has dropped to a two-year low against the US Dollar (USD), reaching levels closer to the mid-0.5700s. This decline comes as expectations for the Reserve Bank of New Zealand (RBNZ) and the Federal Reserve (Fed) continue to differ. Traders are closely monitoring the divergent policies of the two central banks, which has led to increased volatility in the NZD/USD pair. The RBNZ is expected to maintain a dovish stance, while the Fed is anticipated to adopt a more hawkish approach. This contrast in monetary policies has contributed to the recent slide in the NZD/USD exchange rate.