NZD/USD fluctuates as sentiment deteriores, despite RBNZ’s rate hike spurring an initial surge

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• The Reserve Bank of New Zealand’s decision to raise rates by 50 bps lifted the NZD/USD pair to new 2-month highs.
• The US ADP Employment Change report for March was below estimates, as the labor market feels the Fed’s cumulative tightening.
• NZD/USD Price Analysis: Downside risks remain below 0.6400.

The New Zealand Dollar (NZD) reversed its course against the US Dollar (USD), after hitting a fresh two-month high at 0.6379, following an astonishing 50 bps hike by the Reserve Bank of New Zealand (RBNZ). However, sentiment shifting sour spurred flows toward safe-haven assets. Therefore, the NZD/USD is trading at 0.6331, clinging to minimal gains of 0.30%.