- NZD/USD meets with a fresh supply on Wednesday and snaps a two-day winning streak.
- The USD struggles to lure buyers amid September Fed rate cut bets and could lend support.
- The focus, meanwhile, remains on the release of the Q1 New Zealand GDP print on Thursday.
The NZD/USD pair struggles to capitalize on the previous day's goodish rebound from sub-0.6100 levels, or over a one-week low and attracts some sellers during the Asian session on Wednesday. Spot prices currently trade around the 0.6135 region, down 0.10% for the day, though lack follow-through selling in the wake of a softer tone surrounding the US Dollar (USD).
The USD Index (DXY), which tracks the Greenback against a basket of currencies, languishes near the weekly low touched the previous day amid expectations that the Federal Reserve (Fed) will cut interest rates soon. The bets were lifted by softer US Retail Sales figures on Tuesday, which pointed to signs of exhaustion among US consumers. This comes on the back of last week's weaker US consumer and producer prices, supporting prospects for an imminent start of the Fed's rate-cutting cycle in September.
Apart from this, a bullish tone across the global equity markets is seen undermining the safe-haven buck and might lend support to the risk-sensitive Kiwi. That said, mixed economic data released from China on Monday underlined a bumpy recovery in the world's second-largest economy and is seen weighing on antipodean currencies, including the New Zealand Dollar (NZD). Apart from this, comments by the Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway exert pressure on the NZD/USD pair.
Conway noted that inflation may be stickier in the short term, though could fall more quickly than expected in the medium term. This, in turn, could keep bullish traders on the back foot ahead of the New Zealand economic growth data for the first quarter, which is due for release on Thursday. In the meantime, the USD price dynamics might continue to influence the NZD/USD pair in the absence of any relevant market-moving economic data and relatively thin trading volumes on the back of a US bank holiday on Wednesday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

Gold hovers around all-time highs near $3,250
Gold is holding steady near the $3,250 mark, fuelled by robust safe-haven demand, trade war concerns, and a softer-than-expected US inflation gauge. The US Dollar keeps trading with heavy losses around three-year lows.

EUR/USD retreats towards 1.1300 as Wall Street shrugs off trade war headlines
The EUR/USD pair retreated further from its recent multi-month peak at 1.1473 and trades around the 1.1300 mark. Wall Street manages to advance ahead of the weekly close, despite escalating tensions between Washington and Beijing and mounting fears of a US recession. Profit-taking ahead of the close also weighs on the pair.

GBP/USD trims gains, recedes to the 1.3050 zone
GBP/USD now gives away part of the earlier advance to fresh highs near 1.3150. Meanwhile, the US Dollar remains offered amid escalating China-US trade tensions, recession fears in the US, and softer-than-expected US Producer Price data.

Bitcoin, Ethereum, Dogecoin and Cardano stabilze – Why crypto is in limbo
Bitcoin, Ethereum, Dogecoin and Cardano stabilize on Friday as crypto market capitalization steadies around $2.69 trillion. Crypto traders are recovering from the swing in token prices and the Monday bloodbath.

Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.