The Reserve Bank of New Zealand’s 25 basis point rate increase lifts NZD/USD to a six-week high, though resistance at moving averages caps further advances.
NZD/USD climbed to 0.5771 on Friday, extending its recovery after the Reserve Bank of New Zealand raised the Official Cash Rate by 25 basis points on Wednesday. The move marked a second consecutive weekly gain for the pair, which hit an intraday high of 0.5794, its strongest level since June 18.
The rally follows a late-June low of 0.5626, the weakest print since November 2025. NZD/USD broke above its 21-day Simple Moving Average at 0.5717, with momentum indicators like the RSI rising above 50. However, the pair remains below critical resistance at the 50-day, 100-day, and 200-day SMAs near 0.5800.
Technical resistance at 0.5800 aligns with the 50-day SMA at 0.5815, while a breakout could target 0.5900 and 0.6000. Downside support lies at recent lows, though bearish momentum appears to be fading.