NZD/USD Forecast: Kiwi Slumps Below 0.5950 as RBNZ Rate-Cut Bets Rise

NZD/USD Forecast: Kiwi Slumps Below 0.5950 as RBNZ Rate-Cut Bets Rise

The NZD/USD currency pair slid around 0.4%, trading near 0.5940 in the European session on Tuesday. The decline reflects rising market confidence that the Reserve Bank of New Zealand (RBNZ) will lower interest rates in its upcoming August policy meeting.

Antipodean Currencies Under Pressure

Both the New Zealand Dollar (NZD) and Australian Dollar (AUD) fell against the US Dollar, as markets price in rate cuts from both central banks. The RBNZ appears on track to lead these adjustments, weakening the Kiwi and influencing broader antipodean currency trends.

US Trade Uncertainty Fuels Dollar Strength

Adding to the pressure, ongoing US trade disputes with major partners—namely the EU and Japan—have kept the US Dollar (USD) elevated. This safe-haven demand further drags on NZD/USD, as investors prefer USD in uncertain geopolitical conditions.

Key Takeaways:

• NZD/USD dips to 0.5940 on emerging RBNZ rate-cut expectations.
• Both antipodean currencies face pressure vs USD.
• US trade uncertainty supports the US Dollar.
• Markets expect RBNZ action in August.

Related on Tredu.com:

• Will RBNZ Cut Rates in August? Kiwi Forecast Explained
• Australia and New Zealand Rates: A Parallel View
• How US Trade Tensions Move the Forex Market
• Top Strategies for Trading Antipodean Currencies