NZD/USD weakens amid strong US labor data and Trump’s Iran comments

NZD/USD falls as strong US ADP employment data supports the Greenback.
US President Trump warns the US “may have to give Iran another hit,” boosting safe-haven demand for the USD.
Investors await upcoming New Zealand Retail Sales and PMI data.

Agustin Wazne FXStreet

The NZD/USD pair falls toward the 0.5830 region on Wednesday as the United States (US) Dollar (USD) strengthens following upbeat labor-market data and renewed tensions linked to Iran.

The latest ADP employment report showed that US private employers added 42,250 jobs in the first week of May, marking the strongest reading since October 2025. The stronger labor-market data reinforced expectations that the Federal Reserve (Fed) could maintain a cautious stance on interest-rate cuts, supporting US Treasury yields and boosting the Greenback.

Additional pressure on the New Zealand Dollar (NZD) emerged after United States President Donald Trump stated that “we may have to give Iran another hit” and added that “Iran is begging to make a deal.” The comments revived fears of a broader escalation in the Middle East, increasing safe-haven demand for the US Dollar, and weighing on risk-sensitive currencies such as the NZD.

Looking ahead, traders will closely monitor upcoming New Zealand data releases, including Retail Sales and Purchasing Managers Index (PMI).

Short-term technical analysis:

On the four-hour chart, NZD/USD trades at 0.5836, maintaining a bearish near-term tone as the pair holds below both the 20-period Simple Moving Average (SMA) at 0.5857 and the 100-period SMA at 0.5905. The Relative Strength Index (RSI) hovers near 33, reflecting persistent downside pressure, though the sub-40 reading also hints that sellers may be stretching the move as price stabilizes just above nearby support.

On the topside, initial resistance emerges at 0.5842, followed by a closer cap at 0.5849; a sustained break above these levels would be needed to challenge the 20-period SMA at 0.5857 and, later, the 100-period SMA at 0.5905. On the downside, immediate support is aligned at 0.5826, with a further floor at 0.5817; a drop through this band would reinforce the bearish bias and open the way to fresh lows on the four-hour horizon.

(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.

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