The pair gains on RBNZ hawkishness but faces pressure from upcoming US Nonfarm Payrolls data and technical resistance.
The NZD/USD pair trades at 0.5865 in early European trading, supported by the Reserve Bank of New Zealand’s signal for earlier and larger rate hikes. Governor Anna Breman cited inflation risks from Middle East conflicts and rising input costs, prompting markets to price in multiple hikes through early 2027.
Analysts expect US Nonfarm Payrolls to show 85,000 jobs added in May, with unemployment steady at 4.3%. A stronger-than-expected report could boost the USD, weighing on the pair. Technically, NZD/USD remains below its 100-day SMA at 0.5900, with the RSI near 47, signaling weak momentum.
Resistance is seen at 0.5895, with a break above needed to shift sentiment. The pair’s outlook hinges on US data and RBNZ policy expectations.