The currency pair remains subdued as Fed officials signal prolonged high rates and geopolitical risks support the USD.
The NZD/USD pair traded at 0.5867 on Friday, reflecting muted movement as the USD strengthened on cautious Federal Reserve commentary and safe-haven demand. Kansas City Fed President Jeff Schmid warned that inflation remains the primary risk, hinting at potential rate hikes if price pressures persist. San Francisco Fed President Mary Daly echoed this stance, emphasizing the Fed’s commitment to returning inflation to 2% before considering cuts.
Technical analysis shows the pair below key moving averages, with resistance at 0.5878-0.5888 and support at 0.5865. The Relative Strength Index near 35 indicates continued downside pressure, reinforcing a bearish near-term outlook. Markets remain focused on Fed policy signals and geopolitical developments, particularly tensions involving Iran.