NZD/USD rose 0.55% to almost 0.5967 during Friday’s European trading session and is up 2% so far this week. The Kiwi pair is extending its winning streak for a third trading day on hopes that the Reserve Bank of New Zealand (RBNZ) will adopt an ultra-hawkish stance in monetary policy to bring down inflation.
New Zealand dollar price this week
The table below shows the percentage change in the New Zealand Dollar (NZD) against the major currencies traded this week. The New Zealand dollar was strongest against the Japanese yen.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | 0.26% | 0.27% | -0.00% | -0.04% | -1.47% | -0.26% | |
| EUR | 0.02% | 0.31% | 0.32% | 0.02% | -0.05% | -1.45% | -0.21% | |
| GBP | -0.26% | -0.31% | -0.24% | -0.30% | -0.36% | -1.76% | -0.51% | |
| JPY | -0.27% | -0.32% | 0.24% | -0.29% | -0.35% | -1.77% | -0.55% | |
| BOOR | 0.00% | -0.02% | 0.30% | 0.29% | -0.06% | -1.48% | -0.20% | |
| AUD | 0.04% | 0.05% | 0.36% | 0.35% | 0.06% | -1.40% | -0.20% | |
| NZD | 1.47% | 1.45% | 1.76% | 1.77% | 1.48% | 1.40% | 1.27% | |
| CHF | 0.26% | 0.21% | 0.51% | 0.55% | 0.20% | 0.20% | -1.27% |
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 New Zealand dollar from the left column and move along the horizontal line to the US dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
Earlier in the day, RBNZ Governor Anna Breman said interest rates were likely to rise earlier and more than previously signaled to combat inflation, Reuters reported. Breman added: “The commission remains focused on ensuring inflation returns to the target while avoiding unnecessary volatility in the economy.”
This is the second time this week that RBNZ Governor Breman has stressed the need to tighten monetary conditions to tardy the rise in inflation. “The Committee sees continued inflationary pressures and agrees that the cash rate must be higher in the future,” Breman said on Wednesday, following the central bank’s decision to leave the official cash rate (OCR) unchanged at 2.25%.
Meanwhile, investors are awaiting President Donald Trump’s approval of an agreement between the United States (US) and Iran on a 60-day Memorandum of Understanding (MoU). At the time of writing, the US Dollar Index (DXY), which tracks the value of the dollar against six major currencies, is slightly higher at near 99.10.
NZD/USD technical analysis
At press time, NZD/USD is trading at around 0.5967. The pair is holding above the 20-day exponential moving average (EMA) at 0.5894, maintaining a short-term tone as price continues to rebound from last week’s lows.
The relative strength index (RSI) is hovering around 59, indicating a sturdy but not yet overbought uptrend, while the spot price is hovering around the intraday opening level.
On the other hand, initial support is apparent at the 20-day EMA around 0.5894, where a break would expose deeper losses towards the May 26 low at 0.5831. On the other hand, the pair could start a novel stage of growth if it manages to maintain its lead above the May 6 high of 0.5991. Looking up, the main resistance zone will be the February 26 high at 0.6014, followed by the February 18 high at 0.6054.
(The technical analysis for this story was written with the facilitate of an AI tool.)
New Zealand Dollar FAQs
The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known currency among investors. Its value is largely determined by the condition of the New Zealand economy and the policy of the country’s central bank. Still, there are some unique features that can also cause the NZD to move. The performance of the Chinese economy tends to move Kiwis because China is New Zealand’s largest trading partner. Bad news for the Chinese economy is likely to mean fewer New Zealand exports to the country, which hits the economy and therefore the currency. Another factor influencing NZD is dairy prices, as the dairy industry is New Zealand’s main export. High dairy product prices boost export earnings, positively impacting the economy and therefore NZD.
The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate of 1% to 3% over the medium term, with particular emphasis on keeping it close to the average level of 2%. For this purpose, the bank sets the appropriate level of interest rates. When inflation gets too high, the RBNZ will raise interest rates to cold the economy, but this move will also push up bond yields, making it more attractive for investors to invest in the country and therefore strengthening New Zealand’s currency. On the contrary, lower interest rates tend to weaken NZD. The so-called interest rate differential, which is how New Zealand rates are or are expected to be compared to those set by the US Federal Reserve, could also play a key role in the movement of the NZD/USD pair.
Macroeconomic data releases in New Zealand are key to assessing the state of the economy and may impact the valuation of the New Zealand dollar (NZD). NZD is well served by a sturdy economy, underpinned by high economic growth, low unemployment and high confidence. High economic growth attracts foreign investment and may prompt the Reserve Bank of New Zealand to raise interest rates if this economic strength is accompanied by increased inflation. Conversely, if economic data is faint, NZD will likely lose value.
The New Zealand dollar (NZD) tends to strengthen during periods of increased risk or when investors perceive that broader market risk is low and are confident about growth. This tends to lead to a more favorable outlook for commodities and so-called “commodity currencies” such as the kiwi. On the other hand, NZD tends to weaken during periods of market turmoil or economic uncertainty as investors tend to sell higher risk assets and flee to more stable sheltered havens.
