The New Zealand Dollar weakens for a fifth day as US rate hike expectations and stalled Iran-US talks weigh on risk sentiment.
The New Zealand Dollar (NZD) fell to 0.5685 against the US Dollar (USD) on Tuesday, marking its fifth straight decline and approaching year-to-date lows at 0.5683. The drop reflects cautious markets amid stalled US-Iran negotiations and rising US Treasury yields, which bolster the USD.
Traders are pricing in a 70% chance of a Federal Reserve rate hike in September, up sharply from less than 30% a year ago. The CME Group’s Fed Watch Tool now fully prices at least a 25-basis-point increase by year-end. Meanwhile, Iranian officials confirmed technical talks with the US are complete but offered no timeline for reopening the Strait of Hormuz, a key oil transit route.
Technical indicators signal further downside for NZD/USD, with the MACD negative and the RSI in oversold territory. Support is seen at 0.5680, with a potential target near 0.5640 if selling pressure persists.