The New Zealand Dollar declines for a third day as investors favor the USD amid geopolitical risks and weak Chinese economic data.
NZD/USD dropped to around 0.5810 in Asian trading Tuesday, extending losses for a third straight session. The pair weakened as the US Dollar held firm amid broad market caution over Iran’s unresolved nuclear program and delays in reopening the Strait of Hormuz.
Investors await clarity on the draft agreement between Washington and Tehran, which calls for the strait to reopen within 30 days under Iranian oversight. Meanwhile, the Federal Reserve is expected to keep interest rates unchanged at 3.50%-3.75% on Wednesday, with traders focusing on new Chair Kevin Warsh’s guidance.
The NZD also faces pressure from weak Chinese economic data, as China accounts for roughly a third of New Zealand’s goods exports. Market sentiment remains defensive ahead of key geopolitical and monetary policy updates.