New Zealand Dollar extends rally as fading Fed-hike bets soften US Dollar

The New Zealand Dollar (NZD) has continued its rally against the US Dollar (USD), trading near 0.6000 and close to its highest level since mid-May. This positive movement is attributed to fading expectations of further Federal Reserve (Fed) interest rate hikes, which have softened the US Dollar. Positive economic data from New Zealand, as indicated by the S&P Global PMIs, contributed to the currency's strength.

China's decision to keep its benchmark lending rates unchanged also provided a sense of reassurance for currencies linked to Chinese demand, including the NZD. The NZD is currently trading at 0.5979, with a bullish near-term bias supported by the price holding above both the 20-day and 100-day simple moving averages. However, the immediate barrier at 0.6000 will need to be held to maintain the current upward trend.

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