The New Zealand dollar weakens as hawkish Fed policy drives broad USD strength, pushing NZDUSD toward critical support levels.
The NZDUSD pair dropped to a new low of 0.5709, approaching a key support zone between 0.5688 and 0.5698. The decline follows a sharp reversal from a high near 0.5862 after the Federal Reserve’s hawkish stance strengthened the U.S. dollar.
Earlier this week, the pair attempted a rebound but failed to sustain gains, extending losses into Friday’s session. Treasury yields rose, with the 2-year and 10-year yields climbing 5.8 basis points, reinforcing the dollar’s broad rally. The NZDUSD is the weakest major currency pair, down 0.54% on the day.
A break below the 0.5688-0.5698 support zone would target the year’s low at 0.5677, further solidifying a bearish outlook for the pair.