It was a fairly eventful session in the FX space with the RBNZ's dovish shift putting pressure on the NZD across the board.
Implied volatility levels for GBP pairs ahead of the UK CPI dataSecretary Bessent eyes stablecoins as next big buyer of TreasuriesWhat are analysts expecting from today's UK CPI dataRBNZ’s Hawkesby signals more cuts ahead, data-dependent paceBiggest changes in the RBNZs August policy reportAUDNZD testing higher timeframe resistance after RBNZChina to showcase military strength with new hypersonic weapons at paradeEURNZD breaks above 1.9900 after dovish RBNZNZD tumbles after RBNZ sizeable OCR downgrade and discussions of a 50bp cutReserve Bank of New Zealand (RBNZ) cuts rates by 0.25% as expectedPBOC sets USD/ CNY mid-point today at 7.1384 (vs. estimate at 7.1897)WSJ saying Musk is pumping the brakes regarding the new political partyPBOC's Loan Prime Rates unchanged: 1 year 3%, 5 year 3.5%PBOC is expected to set the USD/CNY reference rate at 7.1897 – Reuters estimateGoldman cuts near-term US gas forecasts, stays bullish on 2026 outlookImplied volatility levels for NZD pairs ahead of the RBNZJapan Exports YY -2.6% vs -2.1% expectedJapan Machinery Orders YY 7.6% vs 5.0% expectedChina and India agree to restart dialogue mechanisms, stress border managementUS Treasury chief Bessent upbeat on China talks, economy, and possible Budapest summitPreview for the RBNZ policy decisionTrump says Zelenskiy-Putin meeting being arrangedEconomic Calendar for 20 Aug 2025ANZ scenario planning for today's RBNZSyria and Israel hold US-mediated talks in Paris on regional stabilityNorth Korea’s Kim Yo Jong dismisses South Korea as diplomatic partnerRisk off day for tech with treasuries & USD catching a bidTrump, Orban discussed Ukraine’s EU talks and possible Budapest summit siteOil private survey of inventory showed headline crude draw of -2.4MLN vs -1.2MLN expectedMexico to propose reinstating North American steel committee with USRisk sentiment picked up where it ended yesterday, with risk-off sentiment spilling over into today's Asia-Pac session as well. The moves were nowhere as dramatic as we saw yesterday, but equities have remained pressured, while safe haven FX leads and high beta FX has stayed pressured.
The main event for the Asia-Pac session was the RBNZ decision, where the bank took a dovish tilt by lowering the OCR to 2.5% ito accompany two more cuts.
The reason for the bank's dovish shift comes from concerns about growth, output and the labour market, despite projecting a higher level of inflation compared to May. The minutes of the meeting also showed that the bank actively discussed the possibility of a 50 basis point cut, with two members voting for a 50bp cut as well.
The statement and minutes saw immediate pressure in the NZD, with the NZDUSD trading down towards 0.85200 (its lowest levels since April).
In other markets, things were calmer, with all eyes firmly set on Friday's Jackson Hole symposium.
The main highlights for later today is UK CPI due early in the EU session, followed by Final HICP data for Europe, as well as the FOMC meeting minutes due later in the US session.
This article was written by Arno V Venter at investinglive.com.Hence then, the article about investinglive asia pacific fx news wrap 20 aug nzd dumps on dovish rbnz was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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