The New Zealand Dollar climbs to a three-month high against the USD amid softer Fed hike bets and strong risk sentiment.
The New Zealand Dollar (NZD) rose to 0.5979 against the US Dollar (USD) on Friday, extending its rally to near 0.6000, its highest level since late May. The advance comes as expectations for Federal Reserve rate hikes fade, weakening the USD despite stronger-than-expected US private-sector activity in flash S&P Global PMIs.
While US Services PMI beat forecasts, Manufacturing slipped, and the data failed to support the USD. China’s decision to hold benchmark lending rates steady provided additional support for the Kiwi, alongside a broader risk-on tone lifting higher-beta currencies. Gold and Silver surged, and the Australian Dollar is on track for its longest weekly winning streak since 2020.
Technical analysis shows NZD/USD holding above its 20-day and 100-day simple moving averages at 0.5876 and 0.5837, respectively. Resistance at 0.6000 remains a key hurdle, with a break needed to sustain momentum.