The New Zealand Dollar weakens near 0.5900 as a firmer US Dollar and elevated oil prices weigh on the Kiwi.
The New Zealand Dollar (NZD) retreated to 0.5881 against the US Dollar (USD) on Monday, erasing gains from last week’s push toward multi-day highs. A stronger Greenback, driven by safe-haven demand amid US-Iran tensions, and a surge in West Texas Intermediate (WTI) oil prices to near $81.50 per barrel pressured the Kiwi.
Earlier, NZD/USD climbed toward 0.5900 but failed to sustain momentum as the US Dollar Index (DXY) approached 100. The Strait of Hormuz remains closed, keeping risk premiums elevated and supporting the USD. Domestic factors have taken a backseat to broader market dynamics.
Technical indicators suggest modest bullish bias, with the pair holding above its 100-period Simple Moving Average at 0.5840. Resistance levels are stacked at 0.5884, 0.5891, and 0.5901, with stronger barriers at 0.5930 and 0.5965.