FX.co ★ NZ Dollar Steady After Announcement of New RBNZ Chief

The New Zealand dollar remained steady at approximately $0.586 on Wednesday as market participants assessed the implications of the newly appointed Reserve Bank of New Zealand (RBNZ) governor on monetary policy. Finance Minister Nicola Willis announced that Anna Breman, who currently serves as the First Deputy Governor of Sweden's central bank, will assume the role of RBNZ governor on December 1. The kiwi faces downward pressure following last week's GDP results, which fell short of expectations and prompted speculation of additional monetary policy easing. Investors have fully priced in a 25 basis point interest rate reduction to 2.75% for October and are also considering a 25% likelihood of a more significant 50 basis point cut. Meanwhile, the New Zealand dollar finds some support from a weakening US dollar, as traders continue to anticipate two further rate cuts from the Federal Reserve this year, despite the cautious tone expressed by Chair Jerome Powell regarding future easing.