Forex
Home›Forex›Major Pairs›NZD/USD slides back below 0.5600 as USD demand firms
NZD/USD slides back below 0.5600 as USD demand firms
The move comes as softer US PCE and weak payrolls dial back expectations for an October Fed hike.
The New Zealand dollar slid against the US dollar, with NZD/USD dropping back below 0.5600 during the Asian session, according to FXStreet. The pair was trading near the lowest level it had seen since a November 2025 low.
FXStreet said softer US PCE data and a weak US Nonfarm Payrolls report reduced market expectations for an October Federal Reserve rate hike and helped pull US bond yields away from multi year highs. Traders were still pricing roughly an 85.0% chance of a US borrowing cost increase by the end of this year.
The outlet also pointed to ongoing geopolitical uncertainty supporting the safe haven US dollar, which weighed on NZD/USD. FXStreet cited developments including Yemen operations aimed at retaking territory from the Houthis, comments about the Strait of Hormuz, and reports of Russian air strikes on multiple Ukrainian regions.
FXStreet added that this geopolitical risk premium remained a factor for currency markets, keeping pressure on the New Zealand dollar versus the US dollar.