New Zealand Dollar hangs near weekly low, below 0.5950 as Fed hike bets lift USD
- NZD/USD regains some positive traction on Thursday, though it lacks bullish conviction.
- The hot US inflation data lifts Fed hike bets, supporting the USD and capping spot prices.
- The downside seems limited as traders await Fed Chair Kevin Warsh’s speech on Friday.
The NZD/USD pair slips back below mid-0.5900s during the early European session on Thursday, back closer the weekly low, touched the previous day.
The US Personal Consumption Expenditures (PCE) Price Index, released on Wednesday, pointed to still-sticky US inflation and reaffirmed bets for at least one interest rate hike by the US Federal Reserve (Fed) in 2026. The hawkish outlook, in turn, helps the US Dollar (USD) preserve the overnight gains and acts as a headwind for the NZD/USD pair.
However, the US Treasury's buyback strategy keeps US bond yields depressed, which, along with the optimism over a potential US-Iran deal and the reopening of the Strait of Hormuz, caps the safe-haven buck. In fact, media reports suggest that the US and Iran have reached a new ceasefire deal that would be announced in the coming days.
Furthermore, Iran and Oman have agreed on a temporary maritime route for commercial ships travelling through the waterway. This eases inflation fears stemming from higher energy prices, holding back USD bulls from placing fresh bets and supporting the NZD/USD pair amid the Reserve Bank of New Zealand's (RBNZ) hawkish tilt.
Traders, however, seem hesitant and opt to wait for more cues about the Fed's future policy path to determine the next leg of a directional move. Hence, the focus will remain glued to Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium on Friday, which will drive the USD and provide a fresh impetus to the NZD/USD pair.
NZD/USD daily chart
Technical Analysis
Against the backdrop of the recent failure near the 0.6000 psychological mark, a break below the 0.5930-0.5925 horizontal zone would pave the way for deeper losses. The NZD/USD pair might then weaken below the 0.5900 mark and test the recent swing lows around 0.5850–0.5820. Meanwhile, a daily close above 0.6000 would likely extend the recovery toward the mid‑0.6000s.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.21% | 0.32% | 0.29% | 0.57% | -0.25% | 0.47% | 0.53% | |
| EUR | -0.21% | 0.11% | -0.02% | 0.36% | -0.46% | 0.26% | 0.36% | |
| GBP | -0.32% | -0.11% | -0.19% | 0.26% | -0.55% | 0.15% | 0.22% | |
| JPY | -0.29% | 0.02% | 0.19% | 0.33% | -0.47% | 0.27% | 0.32% | |
| CAD | -0.57% | -0.36% | -0.26% | -0.33% | -0.77% | -0.06% | -0.03% | |
| AUD | 0.25% | 0.46% | 0.55% | 0.47% | 0.77% | 0.72% | 0.79% | |
| NZD | -0.47% | -0.26% | -0.15% | -0.27% | 0.06% | -0.72% | 0.07% | |
| CHF | -0.53% | -0.36% | -0.22% | -0.32% | 0.03% | -0.79% | -0.07% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
