NZD/USD Rally Continues: Approaches 2025 Highs as USD Weakens

NZD/USD Rally Continues: Approaches 2025 Highs as USD Weakens

The NZD/USD pair is extending its winning streak into a fifth consecutive session, trading around 0.6071 during Friday’s European hours. The pair is now eyeing its year-to-date highs, as the New Zealand Dollar (NZD) strengthens and the US Dollar (USD) weakens.

What’s Pressuring the USD?

• President Trump’s renewed criticism of Fed Chair Jerome Powell casts doubt over central bank independence, shaking investor confidence.
• Weak Q1 US GDP revisions and soft personal spending data have revived rate cut expectations.
• De-escalation in the Israel-Iran conflict is boosting global risk sentiment, decreasing demand for the safe-haven USD.
• The US Dollar Index (DXY) remains under pressure at a near three-year low of 97.10.

Supportive NZ Data Lifts the Kiwi

Adding to NZD's momentum, ANZ-Roy Morgan Consumer Confidence rose to 98.8 in June, marking a 5.9-point increase and its highest reading since December. This reinforces the Reserve Bank of New Zealand’s stance on pausing rate cuts, supporting the NZD’s continued strength.

Technical Snapshot

• Current Price: 0.6071
• Support: 0.6020
• Resistance: 0.6100 (2025 high)

Outlook

As risk appetite improves and doubts grow over the Fed’s policy path, NZD/USD is poised to potentially test fresh yearly highs. Market participants now turn to upcoming US PCE inflation data for further clues.

Explore More: Fed Pressure and Global Risk Trends Drive USD Weakness