Hawkish Fed comments and strong US services data lift the USD, weighing on the New Zealand dollar near 0.5700.
The New Zealand dollar fell below 0.5700 against the US dollar as Federal Reserve Governor Christopher Waller reaffirmed the central bank’s commitment to its 2% inflation target. Waller noted that inflation risks have shifted, with price pressures reaccelerating while the labor market stabilizes, altering the policy outlook.
US services data supported the dollar, with the ISM Services PMI holding at 54.0 in June, in line with forecasts. The Employment Index surged to 51.2 from 47.9, though new orders and prices paid eased slightly, signaling moderating but still elevated demand and cost pressures.
Technical analysis shows NZD/USD trading at 0.5705, above its 20-period SMA but capped by the 100-period SMA, indicating a consolidative phase with a slight bullish bias.