NZD/USD Climbs to 0.5955 as US Dollar Rally Stalls, 200-EMA Holds as Support

NZD/USD Climbs to 0.5955 as US Dollar Rally Stalls, 200-EMA Holds as Support

The NZD/USD currency pair rose by 0.4% to near 0.5955 in Friday’s Asian trading session, rebounding after over two weeks of US Dollar strength. The move comes amid growing expectations for Federal Reserve rate cuts and lingering trade uncertainty between the United States and the European Union.

US Dollar Softens as Trade Talks and Fed Dovishness Dominate

The US Dollar (USD) struggled to extend its recent rally as trade negotiations with the EU remain uncertain. US President Donald Trump hinted at a possible trade agreement, though recent moves—including 30% tariffs on EU imports—have added friction. EU Trade Commissioner Maros Sefcovic arrived in Washington for a new round of discussions.

On the monetary policy front, Fed Governor Christopher Waller reiterated support for a 25 basis point rate cut in July, citing rising risks to the US economy and labor market. Speaking at New York University, Waller emphasized that easing monetary policy is necessary to prevent deeper macroeconomic disruptions.

New Zealand CPI in Focus Next Week

Market participants are now looking ahead to New Zealand’s Q2 Consumer Price Index (CPI) report, scheduled for release on Monday. The data could influence Reserve Bank of New Zealand (RBNZ) rate expectations and determine whether NZD/USD can maintain upward momentum.

Technical Outlook: 200-EMA Remains Crucial Support

From a technical standpoint, NZD/USD holds above its 200-day Exponential Moving Average (EMA)—a key level acting as support on the daily chart. The rebound above this area reinforces the pair’s short-term bullish structure, though volatility could increase around upcoming macro releases.

• Immediate resistance: 0.5975
• Key support: 0.5900 (200-EMA zone)