The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) on Wednesday after the Reserve Bank of New Zealand (RBNZ) delivered a hawkish hold at its latest monetary policy meeting, signaling that the Official Cash Rate (OCR) will likely need to rise sooner and by more…
an projected in the February Monetary Policy Statement. At the time of writing, NZD/USD trades around 0.5895, hovering near two-week highs and up more than 1% on the day
Meanwhile, cautious optimism surrounding ongoing US-Iran negotiations weighs on the Greenback, further supporting risk-sensitive currencies. Sentiment improved after Iran’s State TV reported that Tehran and Washington had drafted an initial unofficial framework for a memorandum of understanding (MOU). According to the draft framework, US military forces would withdraw from the vicinity of Iran and lift the naval blockade, while Iran would restore commercial transit through the Strait of Hormuz to pre-war levels within one month.
The report also stated that any final agreement reached within 60 days would be approved through a binding United Nations Security Council resolution. In reaction, the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, retreats toward the 99.00 mark, reversing the previous day’s gains. Technical Analysis: On the daily chart, NZD/USD holds a modestly bullish near-term bias as spot climbs above both the 50-day Simple Moving Average (SMA) at 0.5854 and the 100-day SMA at 0.5891.