The New Zealand dollar surged to 0.5980, supported by RBNZ rate-hike expectations and a softer US dollar amid Treasury bond buybacks.
NZD/USD rose to 0.5980, its highest level since June 1, driven by a weaker US dollar and expectations of further Reserve Bank of New Zealand rate hikes. The greenback remained under pressure as the US Treasury announced plans to expand buybacks of longer-dated bonds, tapping up to $1 trillion from its General Account.
The move follows a decline in safe-haven demand after the US confirmed the Strait of Hormuz was mine-free. US yields dipped, further weighing on the dollar. Meanwhile, Fed Chair Kevin Warsh is set to speak at the Jackson Hole symposium on Friday, which could influence market sentiment.
Technical analysis shows NZD/USD consolidating above key moving averages, with resistance at 0.5983. The Relative Strength Index near 62 indicates room for further gains if the bullish momentum holds.