• NZD/USD loses ground as RBNZ OIS rates continue to pare Friday's post-ANZ forecast firming.
• ANZ projected that the RBNZ would increase cash rates by a quarter point in February and April.
• RBNZ Governor Adrian Orr highlighted that inflation remains elevated before the Finance and Expenditure Committee on Monday.
• Dallas Fed Bank President Lorie Logan remarked that there is currently no pressing need to reduce interest rates.

NZD/USD retraces its recent gains observed on Friday, trading lower near 0.6140 during the Asian session on Monday. Despite the subdued US Dollar (USD), the NZD/USD pair experiences a decline due to the Reserve Bank of New Zealand (RBNZ) Overnight Indexed Swap (OIS) rates continuing to pare Friday's post-ANZ forecast firming.

Last week, ANZ projected that the RBNZ would increase cash rates by a quarter point in February and April amid elevated cost pressures, bringing them to 6.0%. The RBNZ is scheduled to hold its policy meeting for the first time this year at the end of the month.

Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr testified before the Finance and Expenditure Committee on Monday, addressing questions related to the November 2023 Financial Stability Report. Orr highlighted that inflation remains elevated, which is why the RBNZ has maintained the cash rate at 5.5%.

RBNZ Deputy Governor (Financial Stability) Christian Hawkesby also testified before the Committee, emphasizing that the New Zealand financial system remains robust. He noted that house prices have stabilized over the last six months, and the system is equipped to handle high-interest rates. Moreover, New Zealand Finance Minister Nicola Willis has announced that the government budget will be announced on May 30th