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NZD/USD slips as USD firms after post-NFP jitters
The pair trades near 0.5880, down 0.2% on the day, as Middle East uncertainty and China inflation data weigh on Kiwi sentiment.
NZD/USD extended Friday’s pullback from just above the 0.5900 area and was trading around 0.5880 at the start of the week, down 0.2% for the day, as the US dollar recovered from post-NFP lows, according to FXStreet.
FXStreet said the immediate market reaction to disappointing US Nonfarm Payrolls data appeared to fade, with geopolitical risk supporting the safe-haven USD. It also pointed to uncertainty over the Strait of Hormuz and fresh attacks by Iran-backed Houthi militants against Saudi energy infrastructure, which have helped keep crude higher and revived inflation concerns tied to expectations of at least one US Federal Reserve interest rate hike in 2026.
Additional pressure on antipodean currencies came from weekend data showing China’s annual consumer inflation slowed to a six-month low and producer prices eased more than expected in July. FXStreet noted the Reserve Bank of New Zealand’s hawkish tilt could cushion NZD and limit deeper losses.
Looking ahead, FXStreet said traders may wait for upcoming US inflation figures for more guidance on the Fed’s policy path, while further Middle East developments are expected to influence USD demand. It highlighted that a breakdown below support near 0.5860 would be needed to strengthen the case for additional NZD/USD downside.
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