The NZD/USD pair saw fresh supply during Friday’s Asian session, eroding some of the previous day’s solid recovery from more than two-month lows. However, spot prices remain above the 0.5800 level and remain within the familiar range held since the beginning of this week.
Global risk sentiment increased significantly after US President Donald Trump announced on Thursday that an agreement with Iran had been reached and the final document could be signed soon, perhaps even over the weekend. But Iran responded that it had not made a final decision on the deal, overshadowing the recent optimism. This, along with hawkish sentiment towards the US Federal Reserve (Fed), is helping to revive demand for the US dollar (USD), which in turn is seen as a key factor putting some pressure on the NZD/USD pair.
The US consumer price indexes (CPI) and producer price index (PPI) published this week indicate that inflation is accelerating again. This confirmed market expectations that the US central bank would raise interest rates by the end of this year. The outlook, in turn, is seen as another factor supporting the dollar in the face of continuing geopolitical uncertainty. However, a sudden hawkish move by the Reserve Bank of New Zealand (RBNZ) could be a tailwind for the New Zealand dollar (NZD) and limit losses for the NZD/USD pair.
The RBNZ forecast strongly predicts a 25 basis point (bps) rate escalate at its upcoming meeting on July 8 and indicates that OCR could reach around 2.85% by the end of this year, representing a maximum of three rate increases. This makes it prudent to wait for powerful follow-on selling before positioning to extend the recent pullback from near the psychological 0.6000 mark, the May monthly high. Traders are now looking to the University of Michigan’s U.S. Consumer Sentiment Index for fresh momentum.
Today’s US dollar price
The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.13% | 0.12% | 0.18% | 0.09% | 0.24% | 0.37% | 0.16% | |
| EUR | -0.13% | -0.02% | 0.04% | -0.04% | 0.11% | 0.23% | 0.03% | |
| GBP | -0.12% | 0.02% | 0.09% | -0.02% | 0.10% | 0.25% | 0.06% | |
| JPY | -0.18% | -0.04% | -0.09% | -0.10% | 0.04% | 0.18% | -0.03% | |
| BOOR | -0.09% | 0.04% | 0.02% | 0.10% | 0.14% | 0.27% | 0.07% | |
| AUD | -0.24% | -0.11% | -0.10% | -0.04% | -0.14% | 0.12% | -0.08% | |
| NZD | -0.37% | -0.23% | -0.25% | -0.18% | -0.27% | -0.12% | -0.19% | |
| CHF | -0.16% | -0.03% | -0.06% | 0.03% | -0.07% | 0.08% | 0.19% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
