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NZD/USD rises to four-week top as RBNZ outlook turns hawkish
The NZD strengthens after hawkish remarks from RBNZ chief economist Paul Conway, while the USD steadies ahead of upcoming US CPI data and Fed Chair Kevin Warsh testimony.
NZD/USD gained aggressive bids in the Asian session and climbed to a nearly four-week high, supported by a shift toward a more hawkish policy outlook from New Zealand’s central bank. FXStreet said the New Zealand dollar firmed as Reserve Bank of New Zealand chief economist Paul Conway’s comments raised the prospect of further interest rate hikes.
The US dollar pulled back from a two-day rally as traders held off ahead of the latest US consumer inflation figures and Fed Chair Kevin Warsh’s testimony. This pause, FXStreet added, helped lift NZD/USD.
On the technical side, the pair has found acceptance above the 38.2% Fibonacci retracement level of the May to June decline, with MACD turning positive and moving above zero. The RSI was around 57, suggesting improving momentum but FXStreet said traders should still wait for a break of the 0.5810 to 0.5820 area before adding bullish positions.
FXStreet highlighted the 0.5810 to 0.5820 zone as a key confluence, citing the 50% retracement level and the 200-day simple moving average, while noting upside targets near 0.5853 and broader resistance around 0.5914 and 0.5992. Near-term support was seen around 0.5767, with deeper levels tied to 0.5714 and the recent swing low near 0.5628.