The New Zealand Dollar declines for a second day amid heightened geopolitical tensions and weaker-than-expected US economic data.
The NZD/USD pair dropped to 0.5870 in European trading on Thursday, extending losses for a second consecutive session. The US Dollar gained support from safe-haven demand after an Israeli airstrike in southern Lebanon killed one person and injured 11, escalating regional tensions.
US economic data sent mixed signals, with ADP private-sector payrolls rising just 44,000 in July, down sharply from June’s revised 95,000 and below the 70,000 forecast. Meanwhile, the ISM Services PMI edged up to 54.1 from 54.0, missing expectations of 54.5.
Market sentiment was slightly eased by reports of a temporary maritime agreement between Iran and Oman, which could boost Middle Eastern energy flows through the Strait of Hormuz. However, the deal’s short-term nature limited its impact on supply disruption fears.