Stronger US manufacturing data and geopolitical risks weigh on the New Zealand Dollar ahead of key employment figures.
The NZD/USD pair fell to near 0.5870 in Asian trading, driven by robust US economic data and safe-haven demand for the USD. The ISM Manufacturing PMI rose to 55.6 in July, exceeding expectations of 54.0 and marking the fastest expansion since 2022.
Uncertainty over US-Iran negotiations added to the USD’s strength, with conflicting statements from both sides. New Zealand’s upcoming employment report, expected to show a rise in unemployment to 5.4%, could influence the RBNZ’s rate hike path.
Analysts forecast the RBNZ may raise rates to 3.25% or higher by year-end, though market reactions remain tied to labor data and geopolitical developments.