The New Zealand Dollar weakens 0.20% as Middle East tensions and Fed rate hike bets support the USD near 0.5880.
The NZD/USD pair retreated 0.20% to around 0.5880 early Monday, reversing Friday’s late gains above 0.5900. The pullback follows a modest rebound in the USD, driven by geopolitical tensions in the Middle East and renewed attacks on Saudi energy infrastructure.
The pair remains within its recent trading range, despite fading post-NFP USD weakness. China’s softer-than-expected inflation data over the weekend added pressure on antipodean currencies, including the NZD. However, the Reserve Bank of New Zealand’s hawkish stance may limit further losses.
Markets await this week’s US inflation data for clues on the Federal Reserve’s rate path, with some traders pricing in a potential hike in 2026 amid persistent inflation concerns.