The New Zealand dollar climbs against the USD after four days of losses, driven by declining expectations of further Federal Reserve rate hikes.
The NZD/USD pair recovered from a two-week low of 0.5820, rising above 0.5850 during Friday’s Asian trading session. The move snapped a four-day losing streak as the US dollar weakened amid fading bets on additional Federal Reserve rate hikes.
Prior to the rebound, the pair had fallen steadily, reflecting broader USD strength and risk aversion. Market consensus had anticipated a pause in Fed tightening, but recent data and commentary revived concerns about prolonged higher rates before the shift.
The immediate reaction saw the NZD gain modest traction, though traders remain cautious ahead of upcoming US economic releases that could influence Fed policy expectations.