New Zealand Dollar extends gains to fresh high since June, above mid-0.5900s vs softer USD

NZD/USD retains its positive bias for the third straight day amid a combination of supporting factors.
Receding Fed-hike bets weigh on the USD, while bets for another RBNZ rate hike support the NZD.
Geopolitical risks could limit losses for the safe-haven USD and cap the pair ahead of flash US PMIs.

Haresh Menghani FXStreet

The NZD/USD pair attracts buyers for the third straight day and climbs to a fresh high since early June, around the 0.5965-0.5970 region during the Asian session on Friday. Spot prices remain on track to register strong weekly gains amid a supportive fundamental backdrop.

The US Dollar (USD) struggles to capitalize on the previous day's bounce from a three-month low amid receding bets for an immediate interest rate hike by the US Federal Reserve (Fed). The New Zealand Dollar (NZD), on the other hand, draws some support from expectations of another interest rate hike by the Reserve Bank of New Zealand (RBNZ). These turn out to be key factors lending support to the NZD/USD pair.

Meanwhile, investors remain worried about inflation risks stemming from higher oil prices due to the Middle East crisis. Adding to this, hawkish FOMC Minutes released on Wednesday keep the door open for some policy tightening by the US central bank. Furthermore, traders continue to price in the geopolitical risk premium amid the US-Iran stalemate over the Strait of Hormuz, which should limit losses for the safe-haven buck.

In the latest developments, President Donald Trump said that the US will launch the most crushing economic operation against Iran and threatened severe penalties on any nation that helps Tehran evade sanctions or does business with Iran. Moreover, Vice President JD Vance said that economic pressure is the most effective tool against Iran. This warrants some caution for USD bears and positioning for further NZD/USD appreciation.

On the economic data front, New Zealand recorded a monthly trade deficit of NZ$1.95 billion in July. This, however, does little to provide any meaningful impetus as spot prices remain at the mercy of USD price dynamics. Traders now look forward to the release of flash US PMIs, which, along with the incoming geopolitical headlines, will drive the buck and produce short-term trading opportunities around the NZD/USD pair.

NZD/USD 4-hour chart

Technical Analysis

The NZD/USD pair is extending its gains above the 200-period Exponential Moving Average (EMA) at 0.5851, which now underpins a bullish near-term bias. Any corrective pullback could find demand near the said pivotal support before the broader bullish structure is questioned.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

New Zealand Dollar Price This week

The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies this week. New Zealand Dollar was the strongest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-1.07%	-0.90%	-0.25%	-0.75%	-0.57%	-1.24%	-1.59%
EUR	1.07%		0.32%	0.84%	0.33%	0.46%	-0.11%	-0.51%
GBP	0.90%	-0.32%		0.59%	0.02%	0.14%	-0.43%	-0.88%
JPY	0.25%	-0.84%	-0.59%		-0.50%	-0.39%	-1.01%	-1.38%
CAD	0.75%	-0.33%	-0.02%	0.50%		0.12%	-0.51%	-0.89%
AUD	0.57%	-0.46%	-0.14%	0.39%	-0.12%		-0.62%	-1.01%
NZD	1.24%	0.11%	0.43%	1.01%	0.51%	0.62%		-0.41%
CHF	1.59%	0.51%	0.88%	1.38%	0.89%	1.01%	0.41%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD keeps the firm tone above 1.3600

GBP/USD clings to its daily gains, although it gives back some of them and recedes toward the 1.3630-1.3620 band on Thursday. Cable’s uptick comes despite the modest bounce in the Greenback, while investors gear up for key data releases on the UK calendar on Friday.

EUR/USD treads water near 1.1670

EUR/USD gives away all its initial gains and receded to the sub-1.1700 region. The US Dollar’s late recovery has dragged the pair lower, leaving it practically unchanged following the NA session on Thursday. In the meantime, investors gear up for the release of preliminary S&P Global Manufacturing and Services PMIs on both sides of the Atlantic on Friday.

Gold holds above $4,500 as rising bond yields offset reduced Fed hike bets

Gold holds steady above $4,500 during the Asian session on Friday amid a combination of diverging forces. Reduced Fed rate-hike bets keep US Dollar bulls on the back foot and support the non-yielding bullion. However, higher US bond yields, bolstered by inflation risks stemming from volatile oil prices due to the US-Iran standoff, could limit USD losses and cap the commodity. Nevertheless, XAU/USD remains on track to register gains for the third straight week.

CFTC will establish crypto rules if Congress stalls CLARITY Act

Commodity Futures Trading Commission (CFTC) Chairman Michael Selig said the agency is prepared to use its existing authority to establish a regulatory framework for crypto markets if Congress fails to pass the Digital Asset Market Clarity (CLARITY) Act.

$40 trillion debt black hole: Is a financial crisis coming?

The United States is closing in on a milestone that would have been almost unimaginable not long ago: $40 trillion in national debt. That staggering figure framed the latest episode of the Money Metals Midweek Memo, as host Mike Maharrey examined what he calls the economy’s “debt black hole” and zeroed in on a relatively obscure corner of the financial system that could become a much bigger problem: the $1.4 trillion private credit market.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.