A post by @FirstSquawk on X.

The New Zealand dollar strengthened even as traders reduced their expectations for a Reserve Bank of New Zealand rate increase. The kiwi's advance came despite the scaled-back bets on tighter policy, an unusual pairing that suggests the currency was driven by factors other than rate-hike positioning. Markets had been pricing in a greater likelihood of an RBNZ hike, and the pullback in those wagers would typically weigh on the currency. The move matters because it signals that NZD demand is being supported by forces beyond the domestic rate outlook. What to watch next is whether the kiwi can hold its gains if rate-hike expectations continue to fade, and whether the RBNZ's next communication restores or further erodes those bets.