NZD jumps after RBNZ raises its path ahead for rates, suggests later cuts

See this post for the RBNZ jacking up the rate path ahead:

• Reserve Bank of New Zealand leaves cash rate on hold at 5.5%, as widely expected

A more hawkish RBNZ, not only suggesting later rate cuts but even a possibility of another hike.

NZD/USD has jumped, dragging AUD with it (not to the same extent) :

ICYMI, earlier in the session there was news of New Zealand slashing its defence budget. Fiscal spending in NZ is being tightened, so that is something arguing against the need for higher rates.