NZD/USD drifts lower, eyes 0.5800 mark as renewed safe-haven buying benefits USD
- NZD/USD meets with a fresh supply as geopolitical tensions continue to underpin the USD.
- Iran’s IRGC dismissed Trump’s remarks on Monday that the war could be close to ending.
- Inflation concerns dim prospects for more rate cuts by the Fed and also benefit the buck.
The NZD/USD pair attracts some sellers during the Asian session on Tuesday and erodes a part of the previous day's goodish recovery gains from levels just below mid-0.5800s. Spot prices, however, hold above the 0.5800 mark as traders await China's Trade Balance data for some impetus amid persistent geopolitical uncertainties.
US President Donald Trump said on Monday that he expects the war with Iran to be over very soon. Iran’s Islamic Revolutionary Guard Corps (IRGC), however, dismissed Trump’s remarks as nonsense and warned that regional security would either exist for everyone or for no one. This keeps geopolitical risks in play, which revises demand for the safe-haven US Dollar (USD) following the overnight sharp pullback from over a three-month high and turns out to be a key factor weighing on the risk-sensitive Kiwi.
Meanwhile, Crude Oil prices also regained positive traction following Monday's dramatic turnaround from the highest level since June 2022, as concerns about supply disruptions remain due to the closure of the Strait of Hormuz. Investors seem worried that the continuous rise in energy prices would rekindle inflation and delay rate cuts by the US Federal Reserve (Fed). This remains supportive of elevated US Treasury bond yields, further benefiting the USD and exerting pressure on the NZD/USD pair.
Next on tap is the release of China's trade data, which would influence antipodean currencies, including the Kiwi. Traders this week will further confront the latest US inflation figures – the Consumer Price Index (CPI) on Wednesday and the Personal Consumption Expenditure (PCE) Price Index on Friday – for some meaningful impetus. The market focus, however, will remain glued to developments surrounding the US-Israel-Iran war.
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 New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.13% | 0.01% | 0.02% | 0.07% | 0.05% | 0.20% | -0.03% | |
| EUR | -0.13% | -0.10% | -0.15% | -0.06% | -0.08% | 0.07% | -0.15% | |
| GBP | -0.01% | 0.10% | -0.06% | 0.03% | 0.02% | 0.18% | -0.03% | |
| JPY | -0.02% | 0.15% | 0.06% | 0.06% | 0.05% | 0.20% | -0.01% | |
| CAD | -0.07% | 0.06% | -0.03% | -0.06% | -0.01% | 0.14% | -0.07% | |
| AUD | -0.05% | 0.08% | -0.02% | -0.05% | 0.01% | 0.14% | -0.08% | |
| NZD | -0.20% | -0.07% | -0.18% | -0.20% | -0.14% | -0.14% | -0.21% | |
| CHF | 0.03% | 0.15% | 0.03% | 0.01% | 0.07% | 0.08% | 0.21% |
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.
