NZD/USD trades around 0.5880 on Thursday at the time of writing, down 0.10% on the day.
The pair remains under pressure as renewed demand for the US Dollar (USD) emerges, with investors seeking safe-haven assets amid fresh geopolitical tensions in the Middle East
An Israeli airstrike in southern Lebanon has reignited risk aversion, although reports that Iran and Oman are finalizing an agreement on a temporary shipping route through the Strait of Hormuz have helped ease concerns over prolonged disruptions to energy supplies. The US Dollar is benefiting from this defensive positioning despite another round of mixed US economic data. Initial Jobless Claims edged up to 199K last week from a revised 198K previously, but came in below market expectations of 202K.
The release follows Wednesday’s weaker ADP employment report. Investors are now turning their attention to Friday’s Nonfarm Payrolls (NFP) report for a clearer assessment of US labor market conditions. Markets continue to scale back expectations for another interest rate hike from the Federal Reserve (Fed).