• NZD/USD moves higher to near 0.6030 with a focus on RBNZ monetary policy.
• The RBNZ is expected to leave its OCR unchanged at 5.5%.
• The next move in the US Dollar will be guided by the US Inflation data for July.

The NZD/USD pair climbs to near almost three-week high of 0.6030 in Monday’s North American session. The Kiwi asset strengthens as the New Zealand Dollar (NZD) performs strongly ahead of the Reserve Bank of New Zealand’s (RBNZ) monetary policy announcement on Wednesday.

The RBNZ is widely anticipated to keep its Official Cash Rate (OCR) steady at 5.5%. Therefore, investors will keenly focus on the interest rate guidance.

Recently, the New Zealand Institute of Economic Research (NZIER) ran a “shadow board”, which showed that analysts were divided over the August rate cut. Over half of analysts favored a quarter-to-a-percent rate cut to prevent the economy from slowing further. Other analysts wanted to see more evidence of inflation easing further.

Meanwhile, the US Dollar (USD) trades sideways, with investors focusing on the United States (US) Consumer Price Index (CPI) data for July, which will be published on Wednesday. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, stays in a tight range above 103.00.