RBNZ expected to lower rates by 0.50% tomorrow- NZD/USD rebounds from new 2024 low at 0.5797

The Reserve Bank of New Zealand (RBNZ) is due to announce their latest monetary policy decision in the early hours of tomorrow morning. At 1am GMT the RBNZ is widely expected to lower their OCR (Official Cash Rate) to 4.25%, from the current level at 4.75%. The NZD/USD will react to the decision, especially if it delivers anything outside of the median forecast. Ahead of this the NZD has been tracking lower for a considerable time now. The NZD/USD has fallen back from a 2024 high, at 0.6379 set back in September, to a most recent low at 0.5797 and that low was set earlier this morning. That was a new low for the year too. Therefore given the more than 500 pip drop over the past few weeks, is a 0.50% cut tomorrow now priced-in? Well, there is a very good case for assuming it might be and that might help explain the rebound we have seen from that 2024 low earlier today. As to how much more it might rebound is another matter though. The NZD/USD is currently trading at 0.5838