Improved market sentiment and Fed caution on rate cuts lift the New Zealand Dollar against the US Dollar near 0.5874.
The NZD/USD pair rose to 0.5874 on Thursday as the US Dollar weakened amid renewed risk appetite. Sentiment improved following reports of progress in US-Iran negotiations and a softer safe-haven tone after the latest FOMC Minutes, which signaled Fed officials’ concerns over persistent inflation and a preference for delaying rate cuts until clearer evidence emerges.
Earlier, the FOMC Minutes initially supported US Treasury yields, but broader market sentiment shifted as investors focused on geopolitical developments. Upcoming New Zealand economic data, including Q1 Retail Sales and S&P PMI, may provide further direction for the currency.
Technical analysis shows the pair consolidating above the 20-period SMA at 0.5849 but remaining below the 100-period SMA at 0.5902. The RSI at 54 indicates modest upward momentum, though resistance levels at 0.5879 and 0.5888 cap near-term gains.