NZD/JPY confined in tight range, RBNZ ahead

The NZD/JPY currency pair held within a tight daily range on Tuesday ahead of the outcome of the RBNZ’s policy meeting on Wednesday.

The Reserve Bank of New Zealand is expected to keep its official cash rate intact at 2.25% at its April 8th meeting.

The RBNZ has shown little urgency to tighten policy, in contrast to a more hawkish shift expected by markets.

In February, RBNZ Governor Anna Breman stated that the central bank was not intending to raise interest rates “until we see a stronger economy, more inflationary pressure.”

Breman had said the official cash rate would likely stay without change for an extended period.

Meanwhile, Japan’s overall household spending for February came in weaker than expected, highlighting consumer pressure and dampening hawkish Bank of Japan expectations.

Household spending fell 1.7% YoY in February, worsening from a 1.0% YoY drop in the preceding month.

In geopolitics, market players remained focused on the fallout from US President Donald Trump’s deadline to Iran on reopening the Strait of Hormuz, with the uncertainty restraining risk appetite.

The NZD/JPY currency pair was last down 0.03% on the day to trade at 91.134.