NZD/USD extends losses below 0.5800 as hopes of a US-Iran peace deal ebb

The NZD/USD dips below 0.5800 with hopes of a Middle East peace deal fading.
Iran has hardened its stance on a peace deal with the US and denied any negotiations while attacks continue.
The risk-averse market is boosting the US Dollar across the board on Thursday.

Guillermo Alcala FXStreet

The New Zealand Dollar (NZD) heads south against the US Dollar (USD) for the third consecutive day, extending its reversal from last week's highs, a few pips short of 0.5900, to session lows at 0.5781 on Thursday’s European trading session.

The risk-sensitive Kiwi has been hit by a sour market sentiment following Iran’s rejection of the US 15-point plan to end the war in the Middle East. Furthermore, Iran’s Foreign Minister, Abbas Araghchi, denied any negotiations with the US until the bombing continues

Trump has urged Iranian negotiations to “get serious” in a Truth Social post following threats of “hitting harder” if the Islamic Republic fails to accept his conditions. Meanwhile, Israeli aviation has bombed eastern Iran while Iran has launched fresh missile and drone attacks on Israel.

Iran, on the other hand, has presented its own peace plan, demanding guarantees against future military action, compensation for war damages, and formal control of the Strait of Hormuz. Apart from that, the Islamic Republic is willing to include a ceasefire in Lebanon as a request to end the conflict.

The economic calendar has been practically void in New Zealand, and the focus will be on the Roy Morgan Consumer Confidence Survey, due later on Thursday. In the US, the weekly Jobless Claims report and an array of Federal Reserve (Fed) speakers might provide some distraction from the geopolitical crisis.

(This story was corrected on March 26 at 13:40 GMT to say that Iran has launched fresh missile and drone attacks on Israel, and not on Iran as previously reported.)

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