NZD/USD climbs back closer to mid-0.6000s amid a softer USD, Fed-RBNZ divergence
- NZD/USD attracts fresh buyers on Tuesday as a combination of factors undermines the USD.
- Bets for two more rate cuts by the Fed in 2026 and a positive risk tone dent demand for the buck.
- The RBNZ’s relatively hawkish outlook benefits the NZD and contributes to the pair’s move up.
The NZD/USD pair shows some resilience below the 0.6000 psychological mark and gains strong positive traction during the Asian session on Tuesday. Spot prices climb to the 0.6040-0.6045 region in the last hour and, for now, seem to have snapped a two-day losing streak amid a modest US Dollar (USD) downtick.
As investors look past Kevin Warsh's nomination as the next Federal Reserve (Fed) chair, bets that the US central bank will cut interest rates two more times this year keep a lid on the USD's strong recovery from a four-year low, touched last week. Apart from this, the upbeat market mood turns out to be another factor that undermines the Greenback's safe-haven status and benefits the risk-sensitive Kiwi.
US President Donald Trump announced on Monday that the US and India have reached a trade deal and will immediately move to lower tariffs on each other’s goods. Adding to this, signs of de-escalation of tensions between the US and Iran, over the latter's nuclear programme, ease concerns about a military confrontation. This, in turn, boosts investors' confidence and remains supportive of the upbeat mood.
Furthermore, the Reserve Bank of New Zealand's (RBNZ) more hawkish outlook on the future policy path lends support to the New Zealand Dollar (NZD) and the NZD/USD pair. In fact, the RBNZ signalled a likely end to the easing cycle after lowering rates to 2.25% in November. The central bank now forecasts the cash rate will be at 2.20% in the first quarter of 2026 and 2.65% in the fourth quarter of 2027.
Meanwhile, the release of the Job Openings and Labor Turnover Survey (JOLTS) for December 2025 and the Nonfarm Payrolls (NFP) report will be delayed due to a partial US government shutdown. Hence, comments from influential FOMC members will play a key role in driving the USD demand and provide some impetus to the NZD/USD pair, which seems poised to prolong a two-week-old uptrend.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.15% | -0.16% | -0.09% | -0.07% | -0.83% | -0.52% | -0.16% | |
| EUR | 0.15% | -0.00% | 0.06% | 0.09% | -0.68% | -0.37% | -0.01% | |
| GBP | 0.16% | 0.00% | 0.09% | 0.09% | -0.67% | -0.35% | -0.00% | |
| JPY | 0.09% | -0.06% | -0.09% | 0.04% | -0.72% | -0.42% | -0.06% | |
| CAD | 0.07% | -0.09% | -0.09% | -0.04% | -0.76% | -0.46% | -0.07% | |
| AUD | 0.83% | 0.68% | 0.67% | 0.72% | 0.76% | 0.32% | 0.67% | |
| NZD | 0.52% | 0.37% | 0.35% | 0.42% | 0.46% | -0.32% | 0.36% | |
| CHF | 0.16% | 0.01% | 0.00% | 0.06% | 0.07% | -0.67% | -0.36% |
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.
