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NZD/USD rises toward 0.5980 on softer US dollar
The Kiwi strengthened as US Treasury plans to buy back longer-dated bonds pressured US yields, while Reserve Bank of New Zealand rate-hike expectations firmed.
NZD/USD climbed to around 0.5980 on Tuesday, near its highest level since June 1, as a softer US dollar and firmer Reserve Bank of New Zealand rate-hike expectations supported the Kiwi, FXStreet reported.
The greenback stayed under pressure amid the US Treasury’s plan to expand its buyback of longer-dated bonds. FXStreet added that related funding and purchase expectations have weighed on US yields, contributing to the move in NZD/USD.
FXStreet also pointed to macro and geopolitical backdrop, noting that an earlier safe-haven bid tied to Middle East tensions faded after the US declared the Strait of Hormuz free of mines.
On technical levels, the pair traded near 0.5977 on the 4-hour chart, holding a bullish near-term bias while consolidating above key moving averages, with resistance near 0.5983 and support around 0.5971, according to FXStreet.