NZD/USD muted despite stronger risk appetite, softer US Dollar

NZD/USD trades near the 0.5880 region as improving market sentiment supports demand for risk-sensitive currencies.
Investors await New Zealand Q1 Retail Sales data for fresh clues on domestic economic momentum.
US Manufacturing PMI rises to 55.3 in May, reinforcing expectations that the Fed may remain cautious on rate cuts.

Agustin Wazne FXStreet

The NZD/USD recovered and is now trading near the 0.5880 region on Friday as the United States (US) Dollar (USD) loses momentum despite resilient economic data, while improving market sentiment and stronger demand for risk-sensitive assets support the New Zealand Dollar (NZD).

Investors are closely monitoring New Zealand’s upcoming Q1 Retail Sales report, scheduled for later in the day, for additional clues about domestic consumer activity and the broader economic outlook. The data could influence expectations regarding the Reserve Bank of New Zealand’s (RBNZ) future policy path.

The latest S&P Global flash Purchasing Managers Index (PMI) data showed that the US Manufacturing PMI rose to 55.3 in May from 54.5, surpassing market expectations and reinforcing the view that the Federal Reserve (Fed) may maintain a cautious stance on interest-rate cuts. Meanwhile, the Services PMI eased slightly to 50.9, highlighting softer momentum in the service sector and limiting broader gains for the Greenback.

Short-term technical analysis:

On the 4-hour chart, NZD/USD trades at 0.5877. The pair is attempting to stabilize above the 20-period Simple Moving Average (SMA) at 0.5855, while still trading beneath the 100-period SMA at 0.5902, which keeps the broader recovery capped for now. Immediate price action is pivoting around nearby support at 0.5875, and the Relative Strength Index (RSI) has drifted into the mid-50s, hinting at mildly improving momentum rather than a decisive bullish breakout.

On the topside, initial resistance is located at 0.5889, with the 100-period SMA at 0.5902 reinforcing a first cap ahead of a higher barrier near 0.5965. On the downside, nearby support at 0.5875 is followed by 0.5865 and 0.5856, with the 20-period SMA at 0.5855 underpinning this cluster; a sustained break beneath this band would expose deeper weakness, while holding above it would keep the pair in a consolidative, slightly constructive stance.

(The technical analysis of this story was written with the help of an AI tool.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

GBP/USD advances to three-month peak beyond 1.3600

GBP/USD extends its daily rally and trades at its highest level since mid-May above 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected.

EUR/USD surges to 11-week high above 1.1650 after US Treasury announcement

EUR/USD gathers bullish momentum and trades at its highest level since early June above 1.1650 on Wednesday. The US Dollar stays under heavy bearish pressure after the US Treasury announced that it will increase the size of liquidity support buyback operations for longer-dated nominal coupon securities. Later in the day, investors will scrutinize FOMC Minutes for fresh clues on policy outlook.

200-day SMA briefly reclaimed, but Gold pulls back before the next leg north

Gold is struggling around the $4,500 level in Asia on Thursday after reaching the highest level in 11 weeks at $4,528 in early dealings. Gold refreshed two-month highs above $4,500 as Asian traders returned to their desks and reacted positively to the United States Treasury’s rescue plan announced on Wednesday, after longer-dated Treasury yields shot through the roof and roiled the bond markets.

HYPE soars 20% as Trump signals efforts to bring Hyperliquid to US market in White House meeting

Hyperliquid surged over 20% on Wednesday after President Donald Trump said the Commodity Futures Trading Commission is working to bring the decentralized perpetual futures platform into the US.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.