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NZ dollar rebounds against USD after Fed hike bets fade
NZD/USD moved back above 0.5850 as New Zealand’s RBNZ survey showed inflation expectations easing to 2.34% in the third quarter from 2.53% previously.
FXStreet reports that NZD/USD has been recovering after bouncing from the 0.5820 area, a two-week low, and pushing back above 0.5850 during Friday’s Asian session. The move has helped the pair snap a four-day losing streak.
The outlet links the dollar’s softer tone to cooling inflation signals from US CPI and PPI data, which led traders to pare expectations for an immediate Federal Reserve rate hike. That dynamic leaves USD upside limited and supports the Kiwi against the greenback.
FXStreet also points to geopolitical risk as a counterweight for aggressive USD selling. It cites a US-Iran standoff, commentary from US Treasury Secretary Scott Bessent and an IRGC adviser, plus escalation affecting shipping near the Strait of Hormuz and the Red Sea and Bab el-Mandeb.
On the New Zealand side, the outlet notes a Reserve Bank of New Zealand survey showing inflation expectations eased in the third quarter to 2.34% from 2.53% previously, reducing pressure for further tightening. FXStreet says technical levels also matter, with the pair defending the 100-day Simple Moving Average at 0.5827, while a daily close below that would weaken the near-term bullish bias.