The New Zealand Dollar falls to 0.5930 against the USD amid reduced Fed rate cut expectations and geopolitical tensions.
The New Zealand Dollar (NZD) extended its decline against the US Dollar (USD) on Wednesday, hitting the lowest level among G8 currencies. NZD/USD tested support at 0.5930, driven by a stronger USD as investors scaled back bets on Federal Reserve rate cuts following strong US CPI data.
The USD gained traction after Tuesday’s inflation figures dampened hopes for near-term monetary easing. Geopolitical concerns, including the US-Iran standoff, further bolstered the greenback. Meanwhile, a rise in New Zealand’s inflation expectations failed to lift the Kiwi, leaving it vulnerable to further downside.
Technical indicators suggest bearish momentum, with the 4-hour RSI below 50 and a negative MACD histogram. A break below 0.5930 could target 0.5870, while resistance holds near 0.5970.