New Zealand Dollar climbs to fresh highs amid timid US Dollar
NZD/USD climbed to around 0.5980 Tuesday, near its highest level since June 1 as a softer US Dollar (USD) and firm Reserve Bank of New Zealand (RBNZ) rate-hike expectations powered the Kiwi higher.
The New Zealand Dollar surged to fresh record highs on Tuesday, nearing its highest level since June 1. A weaker US Dollar and optimistic expectations of Reserve Bank of New Zealand rate hikes contributed to the kiwi's gains. The US Treasury announced a plan to expand its bond buyback program, potentially tapping up to $1 trillion from its General Account.
This move pressured US yields, and a safe-haven bid linked to Middle East tensions subsided as the US Strait of Hormuz was declared free of mines. Federal Reserve Chair Kevin Warsh's address at the Jackson Hole symposium is scheduled for Friday. On the 4-hour chart, NZD/USD trades at 0.5977, showing a bullish short-term bias as it consolidates above both the 20-period and 100-period SMAs.
The pair is facing immediate resistance at 0.5983, while an RSI of 62 suggests constructive momentum. If it breaks above 0.5983, further gains could follow, with resistance still far above the current level. Support is at 0.5971, followed by the 20-period SMA, with a deeper pullback potentially testing 0.5944. Technical analysis, assisted by AI, suggests that dips may continue while this short-term structure holds.
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