NZD/USD Rallies Toward 0.6000 Ahead of RBNZ Rate Decision

NZD/USD Rallies Toward 0.6000 Ahead of RBNZ Rate Decision

The NZD/USD currency pair extended its gains to around 0.6000 during Tuesday’s early Asian session, supported by ongoing US Dollar weakness. Investors remain wary of the growing US national deficit and renewed trade tensions, which continue to weigh on the Greenback.

Despite US President Donald Trump delaying tariffs on Europe, concerns about the US fiscal outlook persist, discouraging demand for US assets and keeping the Dollar under pressure. Market participants are also focusing on the upcoming Reserve Bank of New Zealand (RBNZ) interest rate decision, expected on Wednesday, where the central bank is likely to deliver its sixth consecutive rate cut.

The spotlight will also be on the US Senate debate over Trump’s tax-cut bill, which could further increase the country’s debt burden. Key US economic data scheduled for later Tuesday include the Conference Board Consumer Confidence index, Durable Goods Orders, and the Dallas Fed Manufacturing Index. These releases are likely to influence USD sentiment and subsequently impact the NZD/USD pair.

In the near term, NZD/USD is expected to remain sensitive to both RBNZ’s policy stance and broader USD movements.