The New Zealand Dollar weakens for a third day as Middle East tensions boost the US Dollar ahead of key US inflation data.
NZD/USD fell to 0.5870 in Asian trading, marking its third straight decline as the US Dollar strengthened on safe-haven flows. Rising geopolitical uncertainty in the Middle East, including stalled peace talks and US-Iran tensions, drove demand for the USD.
The pair has struggled amid shifting Fed rate expectations, with traders awaiting today’s US inflation report. Analysts note inflation trends will determine whether the Fed raises rates further, influencing USD yields and broader market sentiment.
Market odds for a September Fed hike have softened slightly, though crude oil price gains keep hawkish arguments alive. The Dollar’s trajectory remains tied to inflation data and the Fed’s next move.