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.

AUD/USD: Next upside target comes at 0.7000

AUD/USD has advanced further, clinching its third consecutive day of gains and trading at shouting distance from the key 0.7000 threshold on Tuesday. The widespread improved sentiment in the risk complex helped the Aussie maintain its upside momentum, while the fresh selling impulse in the Greenback also contributed to the move.

USD/JPY rises back above 158.00 despite hawkish BoJ outlook

USD/JPY rises back above 158.00 in the early European morning on Tuesday. The pair strengthens as the Japanese Yen fails to find any inspiration from hawkish BoJ expectations and looming intervention risks. Meanwhile, geopolitical uncertainty and elevated US bond yields keep the US Dollar near its YTD high despite receding October Fed hike bets. This, in turn, helps the pair stay supported.

Gold stays firm; looks at $4,200

Gold builds on Monday’s marginal bounce, although it struggles to reclaim the key $4,200 mark per troy ounce so far on Tuesday. The yellow metal’s advance comes on the back of the fresh downside momentum in the US Dollar in tandem with retreating US Treasury yields across the curve.

ZEC expands institutional momentum as Winklevoss files for Zcash ETF

Winklevoss Asset Services, co-owned by crypto exchange Gemini founders Cameron and Tyler Winklevoss, filed a Form S-1 registration statement with the US Securities and Exchange Commission (SEC) on Tuesday for the Winklevoss Zcash (ZEC) ETF. The filing proposes a fund that would hold ZEC and seek to track its price.

Japanese Yen nears 158.00: Two analysts agree it's bullish, and disagree on how far the breakout goes

The JPY is drifting near 158.00 against the USD ahead of a busy week of Japanese data and a still-unclear BoJ timetable. The two most recent FXStreet analyses agree on the direction, but they disagree on the target and the mechanism.

Eurozone inflation just hit 3.8%, its highest in three years. This chart shows why the ECB can’t simply hike its way out

The ECB would normally have a relatively straightforward answer to inflation running almost twice its target: raise interest rates. But these are not normal circumstances. This time, the bond market is already doing part of the tightening for it, leaving the ECB facing an increasingly difficult dilemma.