New Zealand Dollar drifts lower as USD recovers from post-NFP lows amid Mideast jitters
The NZD/USD pair is seen extending Friday's late pullback from the vicinity of the monthly peak – levels just above the 0.5900 mark – and drifting lower at the start of a new week.
The New Zealand Dollar (NZD) is experiencing a slight decline as the US Dollar (USD) recovers from post-NFP levels, with geopolitical concerns contributing to the market's mood. The NZD/USD pair has slipped below the 0.5900 mark and remains within a narrow range around the 0.5880 region, down 0.20% for the day. This comes amidst heightened uncertainty over the Strait of Hormuz and recent attacks by Iran-backed Houthi militants on Saudi energy infrastructure.
Inflation worries, driven by crude oil prices and China's recent subdued economic indicators, further weigh on the NZD. The Reserve Bank of New Zealand's (RBNZ) optimistic outlook could provide support for the NZD, but traders are advised to wait for US inflation data before making any significant bearish bets. The current market situation suggests a neutral near-term bias around the 0.59 handle, with the 0.5865-0.5860 region serving as a potential short-term pivot.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
