Select Language

NZD/USD slips below 0.5950 as markets await RBNZ rate decision, Fed minutes

Breaking news

NZD/USD slips below 0.5950 as markets await RBNZ rate decision, Fed minutes

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.05.28 01:33
NZD/USD slips below 0.5950 as markets await RBNZ rate decision, Fed minutes

update 2025.05.28 01:33

  • The New Zealand Dollar declines as the US Dollar experiences a rebound. 
  • The Greenback increases with upbeat Consumer Confidence, assisting gains.
  • NZD/USD falls toward technical support, holding firm at the mid-point of the September to April decline.

The New Zealand Dollar (NZD) is losing ground against the US Dollar (USD) on Tuesday, slipping back after a failed attempt to break above the key 0.6000 level.

The pullback comes as concerns over US and EU trade tensions ease and the broader market mood becomes more stable, allowing the US Dollar to recover some of last week's losses.

At the time of writing, the NZD/USD pair is trading near 0.5945  after encountering resistance at the psychologically significant 0.6000 mark and failing to build momentum beyond it. 

With US markets back from the Memorial Day break, the USD is finding fresh support. A stronger-than-expected Consumer Confidence reading has helped fuel the rebound. The index rose sharply to 98 in May, up from 85.7 in April, reflecting a notable increase in optimism among US consumers. 

The data highlights growing confidence in the economic outlook despite lingering global uncertainties.

That rejection has prompted a pullback toward the midpoint of the decline from September to April.

NZD/USD retreats with RBNZ rate decision, FOMC minutes ahead

For the Kiwi, Wednesday's economic agenda remains a key focal point for investors as markets prepare for the Reserve Bank of New Zealand's (RBNZ) interest rate decision, scheduled for 02:00 GMT.

Market participants are anticipating that the central bank will announce a 25 bps (0.25%) rate cut. The move would lower the benchmark rate to 3.25%, down from its current level of 3.50%.

Although the reduction has been priced into the NZD/USD exchange rate, the accompanying Monetary Policy Statement may help induce volatility. 

With the report providing insight into the reasoning for the latest announcement and the projected economic outlook, any hawkish or dovish comments may result in a repricing of expectations for the trajectory of interest rates.

For the United States, the Federal Open Market Committee (FOMC) will release the Minutes of its May 6-7 meeting, when policymakers decided to keep the interest rate unchanged. The Minutes are expected to reveal clues on the Fed's hawkish stance and could further help guide expectations for the timing of the next rate cut, currently priced in for September. 

New Zealand Dollar FAQs

The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country's central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand's biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand's main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.

The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors' appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.

Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar's (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate.

The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called 'commodity currencies' such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.



Date

Created

 : 2025.05.28

Update

Last updated

 : 2025.05.28

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Silver Price Forecast: XAG/USD slips but clings above $33.00

Silver price falls some 0.70% on Tuesday, yet it has trimmed some of its earlier losses that pushed the grey's metal below $33.00 to hit a two-day low of $32.77. At the time of writing, the XAG/USD trades at $33.29, remains down in the day.
New
update2025.05.28 05:05

AUD/JPY extends winning streak toward 93.00 as risk sentiment dents Yen appeal

The Australian Dollar (AUD) strengthens against the Japanese Yen (JPY), extending modest gains for the third consecutive day. At the time of writing, the AUD/JPY cross is pushing higher to trade near 93.00 during the late American sessions on Tuesday, up nearly 1% on the day.
New
update2025.05.28 04:29

EUR/USD slips below 1.1400 amid strong US data and soft French inflation

The EUR/USD pair retreats below 1.1400 for the second consecutive day, driven by a recovery in the US Dollar (USD) following an upbeat Consumer Confidence report. Additionally, soft inflation data in France undermined the shared currency, which trades on Tuesday at 1.1335, down over 0.40%.
New
update2025.05.28 04:22

Forex Today: Investors shift their attention to the FOMC Minutes

The US Dollar (USD) regained composure and managed to leave behind two daily retracements in a row on turnaround Tuesday, as US investors returned to their desks following Monday's Memorial Day holiday.
New
update2025.05.28 04:01

Canadian Dollar snaps six-day win streak as markets pare Loonie bets

The Canadian Dollar (CAD) lost ground against the US Dollar (USD) on Tuesday, snapping a six-session winning streak for the Loonie and pushing USD/CAD back above 1.3750 as trade headlines dominate the market cycle.
New
update2025.05.28 03:48

AUD/USD retreats ahead of Australia's CPI release, US FOMC Minutes

The Australian Dollar (AUD) is facing renewed pressure against the US Dollar (USD) on Tuesday as the Greenback rebounds across the board following mixed US economic data and a resurgence in market liquidity.
New
update2025.05.28 03:22

US Dollar Index rebounds toward 99.50 as trade tensions ease, but bearish pressure lingers

The US Dollar Index (DXY), which tracks the value of the US Dollar (USD), is pushing upward as market participants respond to fading trade tensions. Markets are drawing fresh optimism from President Trump's decision to delay the implementation of 50% tariffs on EU imports.
New
update2025.05.28 03:04

Dow Jones Industrial Average rises following tariff walkbacks

The Dow Jones climbed alongside other major equities on Tuesday, with investor sentiment snapping back after last week's declines.
New
update2025.05.28 02:15

ECB's Nagel remains cautious on next rate move

Bundesbank President Joachim Nagel struck a measured tone on the path ahead for interest rates, saying it remains too soon to decide on a further cut next month.
New
update2025.05.28 01:57

ECB's Lane: We are in a zone of normal central banking

Philip Lane, the chief economist of the European Central Bank, indicated that although the majority of factors suggested a continued decline in euro area inflation, there were also concerns, such as the possibility of unsuccessful EU-US trade negotiations, that could lead to an increase in inflation
New
update2025.05.28 01:39

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel