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NZD/USD stays below 0.5900 as traders await US CPI and PPI
The next direction for NZD/USD hinges on Wednesday US CPI and Thursday US PPI, while Middle East risk and recent US payroll disappointment keep USD momentum capped for now.
The New Zealand dollar held just under 0.5900 versus the US dollar, with NZD/USD moving in a tight range during Tuesday’s Asian session, according to FXStreet.
Traders are waiting for fresh catalysts, with the US Consumer Price Index due on Wednesday and the Producer Price Index scheduled for Thursday, both expected to shape views on the Federal Reserve’s policy path and, in turn, near term USD pricing.
FXStreet linked the cautious positioning to mixed fundamentals, including disappointing US Nonfarm Payrolls that led investors to scale back expectations for an immediate Fed rate hike.
At the same time, the outlet said inflation risks from volatile oil tied to the Iran war support expectations for at least one Fed rate hike in 2026, helping sustain elevated US Treasury yields. It also cited Iran ruling out further negotiations with Trump and the impact of disruption in key shipping routes, alongside an RBNZ hawkish tilt that could limit how far NZD/USD falls.
FXStreet added that BBH expects the Kiwi to retain upside room against most major currencies, pointing to above target New Zealand inflation, a more favorable domestic growth outlook, and the Reserve Bank’s policy rate positioned near the lower end of its neutral range of 2.20% to 4.10%. The firm also referenced swaps pricing for nearly 100 bps of cumulative tightening over the next 12 months to 3.50%.