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fxJul 21, 2026, 1:44 AM

NZD/USD rises above 0.5850 as hot NZ CPI fuels RBNZ rate hike bets

The New Zealand Dollar strengthened against the US Dollar on Tuesday after hotter-than-expected inflation data reinforced expectations of further RBNZ rate hikes.

NZDUSD

The NZD/USD pair climbed above 0.5850, reaching around 0.5865 during early Asian trading on Tuesday.

The New Zealand Dollar (NZD) gained ground against the US Dollar (USD) after New Zealand's Consumer Price Index (CPI) came in hotter than anticipated. The data bolsters the case for the Reserve Bank of New Zealand (RBNZ) to continue raising interest rates, supporting the Kiwi.

Traders are now pricing in a higher probability of additional tightening at the next RBNZ meeting, which is weighing on the USD side and lifting NZD/USD.

Source: FXStreet Forex News