|

NZD/USD Price Forecast: Bears eye YTD low at 0.5680 amid US Dollar’s strength

  • NZD/USD extends losses to 0.5725, approaching the year-to-date low of 0.5680.
  • The US Dollar has been boosted by rising bets on Fed rate hikes later in the year.
  • The New Zealand Dollar remains vulnerable while below 0.5800.

The New Zealand Dollar (NZD) is showing the worst performance among major currencies on Friday, extending its decline against the US Dollar (USD) to 0.5724 lows so far, with the year-to-date low of 0.5781 coming closer. The pair is on track for a 1.65% weekly decline, as Fed hiking bets have offset investors' enthusiasm about the US-Iran peace deal

The US Dollar has been boosted this week by the Federal Reserve’s hawkish-leaning stance and the new Chairman Kevin Warsh’s commitment to bring inflationary pressure to heel. Futures markets are pricing a 77% chance that the Fed will hike rates in October, from less than 40% one week before, and a nearly 90% chance of at least one rate hike before the end of the year. 

In the geopolitical front, Oil tankers are sailing through the Strait of Hormuz, which is fuelling a moderate risk appètite on Friday. Investors, however, are pondering the soundness of the peace deal, as Israel’s attacks on Lebanon continue, and US Vice President JD Vance has delayed the talks with Iranian representatives scheduled for Friday in Switzerland.

Technical Analysis: Kiwi remains vulnerable while below 0.5800

Chart Analysis NZD/USD


The technical picture shows the NZD/USD extending a bearish near-term bias with momentum indicators in the 4-hour chart deep into bearish territory. The Relative Strength Index (14) is hovering near 33, just above oversold levels, with the Moving Average Convergence Divergence (MACD) lines stuck below zero.

Bears have found some support at 0.5724, but technical indicators suggest that rallies are likely to find sellers. Further down, the target is the mentioned 2026 low, near 0.5680. Below that level, there is no clear support until the November 2025 low, at the 0.5580 area

On the topside, recovery attempts might face resistance at the intra-day high of 0.5775. The pair should break Thursday's high in the 0.5800 area and the trendline resistance from late May highs, now around 0.5810, to ease downside pressure and look towards the June 15 high, at 0.5864.

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

(This story was corrected on June 19 at 08.47 GMT to say US-Iran peace deal, instead of trade deal, as previously written.)

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.

USDEURGBPJPYCADAUDNZDCHF
USD-0.05%-0.18%-0.06%0.03%-0.07%0.24%0.17%
EUR0.05%-0.13%0.00%0.08%0.00%0.30%0.23%
GBP0.18%0.13%0.11%0.20%0.14%0.43%0.36%
JPY0.06%0.00%-0.11%0.08%0.02%0.29%0.23%
CAD-0.03%-0.08%-0.20%-0.08%-0.05%0.21%0.15%
AUD0.07%0.00%-0.14%-0.02%0.05%0.27%0.23%
NZD-0.24%-0.30%-0.43%-0.29%-0.21%-0.27%-0.07%
CHF-0.17%-0.23%-0.36%-0.23%-0.15%-0.23%0.07%

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

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

More from Guillermo Alcala
Share:

Editor's Picks

British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI data

The British Pound is trimming previous gains against the US Dollar on Monday, returning to the mid-range of the 1.3400s down from fresh seven-week highs, above 1.3500 earlier on the day. Weaker-than-expected UK manufacturing data added pressure on the Pound, which rallied at the Asian session opening, amid news of a halt to the hostilities in Iran.

EUR/USD struggles above 1.1500 despite USD weakness

EUR/USD struggles with its recovery above 1.1500 in European trading on Monday, despite broad US Dollar weakness and improved risk sentiment. The USD loses traction following US President Trump's call off an attack on Iran and that talks between the two sides would happen on Monday. Traders will closely monitor the developments surrounding US-Iran negotiations and US ISM PMI data.

Gold extends range play below $4,100 as rebounding USD meets receding Fed hike bets

Gold struggles to capitalize on a modest weekly bullish gap opening, and remains below the $4,100 mark heading into the European session. The US Dollar stages a modest recovery from its lowest level since June 17, which is seen capping the upside for the commodity. The upside for the USD, however, seems limited amid renewed hopes for a US-Iran peace deal and receding US Fed rate-hike expectations.

Week ahead: US payrolls report and AI earnings to keep investors on edge

After the Fed decision, NFP report awaited for more rate hike clues. Employment also on the agenda in Canada and New Zealand. Chinese trade and Japanese wage data to be watched too. But Iran and AI headlines to remain in driver’s seat for risk sentiment.

Solana risks a steeper decline below $70 despite steady ETF inflows

Solana (SOL) is trading in the red, losing bullish momentum and remaining capped below its 50-day Exponential Moving Average at $75.68. SOL-focused Exchange Traded Funds show resilience with a monthly inflow of $14.62 million in July, while the near-term retail support wanes with the funding rate turning negative.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?
The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.