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New Zealand dollar holds near 0.5790 as USD stays mildly weak

NZD/USD is supported by falling oil prices, after US durable goods orders rose 0.3% month over month in June versus a 1.6% forecast.

Reported · Written up by our desk · Major Pairs

NZD/USD traded near the 0.5790 area on Monday, struggling to extend its recovery despite modest weakness in the US dollar, according to FXStreet.

The New Zealand dollar received support from a sharp decline in oil prices, which can lower energy costs for New Zealand, a country that relies heavily on imported fuel.

In the US, durable goods orders increased 0.3% month over month in June, well below the 1.6% market forecast, after a revised 4.0% decline in May. Orders excluding transportation rose 0.6%, and orders excluding defense increased 0.3%, suggesting underlying business demand stayed relatively resilient, though the softer headline data limited demand for the greenback.

FXStreet also pointed to the risk that upcoming US data could shift expectations before the Federal Reserve decision, with attention next on ADP Employment Change and other releases such as the Housing Price Index and July consumer confidence. The pair was also described as having a bearish near-term bias on short-term charts, with 0.5771 flagged as near-term support.

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