NZD/USD Nears 0.6000 on Dovish Fed Commentary and Israel-Iran Ceasefire Optimism

NZD/USD Moves Toward 0.6000 as Dovish Fed and Middle East De-escalation Support Kiwi

June 24, 2025 – Asian Session
The NZD/USD pair advanced to approximately 0.5995, gaining 0.35% on the day during Tuesday’s early Asian trading. The New Zealand Dollar (NZD) strengthened as the US Dollar (USD) weakened on the back of dovish signals from the Federal Reserve and reduced geopolitical risks.

Dovish Fed Comments Fuel USD Weakness

Market sentiment was buoyed after Fed Vice Chair for Supervision Michelle Bowman, one of the central bank’s known hawks, surprised investors by stating that the Fed would be “wise to cut interest rates in the coming weeks.”

“Risks to the job market are rising, and inflation is cooling sustainably,” Bowman noted on Monday.

Her remarks were echoed by Fed Governor Christopher Waller, who told Reuters on Friday that a July rate cut may be necessary. These comments intensified speculation about a dovish policy shift, leading to increased selling pressure on the USD.

Ceasefire Hopes Calm Market Jitters

Geopolitical factors also played a role. Recent hopes for a ceasefire between Israel and Iran, following missile exchanges and US involvement, have helped stabilize markets, easing demand for the safe-haven US Dollar.

President Donald Trump claimed a complete ceasefire was close, while Iran’s Foreign Minister said Iran would hold fire if Israel stopped its airstrikes by 4 a.m. local time Tuesday.

What’s Next for NZD/USD Traders?

Traders are eyeing two major upcoming events:

• Fed Chair Jerome Powell’s semiannual testimony
• June US Consumer Confidence Report

Both could sway expectations for US monetary policy and move the NZD/USD pair in either direction depending on the tone and data.

Related Articles on Tredu.com:

• Why the Fed May Cut Rates Sooner Than Expected
• NZD/USD Technical Outlook: Can the Pair Sustain the 0.6000 Break?
• Israel-Iran Ceasefire: What It Means for Global Markets