Select Language

NZD/USD clings to gains near one-week top, around 0.5830 amid a bearish USD

Breaking news

NZD/USD clings to gains near one-week top, around 0.5830 amid a bearish USD

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.02 13:57
NZD/USD clings to gains near one-week top, around 0.5830 amid a bearish USD

update 2025.10.02 13:57

  • NZD/USD scales higher for the fifth straight day amid the lack of USD buying interest.
  • The US ADP report reaffirmed bets for two more Fed rate cuts and weighs on the USD.
  • A positive risk tone further undermines the buck and benefits the risk-sensitive Kiwi.

The NZD/USD pair attracts some dip-buyers near the 0.5800 mark during the Asian session on Thursday and turns positive for the fifth consecutive day. Spot prices currently trade around the 0.5825-0.5830 region, just a few pips below the weekly high, and look to build on the recent recovery from the lowest level since April 10, touched last week, amid a bearish US Dollar (USD).

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, struggles to capitalize on the overnight bounce from a one-week low amid expectations that the US Federal Reserve (Fed) will cut rates two more times this year. The bets were lifted by Wednesday's disappointing release of the US ADP report on private-sector employment, which pointed to signs of a softening labor market.

In fact, private companies shed 32K jobs in September, marking the biggest decline since March 2023. Adding to this, the August payrolls number was also revised down to show a loss of 3K jobs compared to an increase of 54K reported initially. This offsets a slight improvement in the Institute for Supply Management's (ISM) Purchasing Managers' Index (PMI), which rose from 48.7 previous to 49.1 in September.

Meanwhile, investors seem relatively unfazed by a partial US government shutdown, which is evident from a generally positive tone around the equity markets. This is seen as another factor undermining the safe-haven buck and benefiting the risk-sensitive Kiwi. That said, rising bets for more interest rate cuts by the Reserve Bank of New Zealand (RBNZ) could act as a headwind for the NZD/USD pair and cap gains.

Hence, it will be prudent to wait for some follow-through buying beyond the 200-day Simple Moving Average (SMA), around the 0.5840 region, before confirming that spot prices have bottomed out. This week's US macro data, including the Weekly Initial Jobless Claims on Thursday, could be delayed amid the US government shutdown, leaving the USD and the NZD/USD pair at the mercy of speeches from Fed officials.

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

 : 2025.10.02

Update

Last updated

 : 2025.10.02

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

EUR/CAD extends upside above 1.6350 as Canadian PMI supports BoC rate cut bets

The EUR/CAD cross extends the rally to around 1.6360 during the early European session on Thursday. The Canadian Dollar (CAD) weakens against the Euro (EUR) as Canadian economic data showed a deeper downturn in the manufacturing sector.
New
update2025.10.02 15:28

FX option expiries for Oct 2 NY cut

FX option expiries for Oct 2 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
update2025.10.02 15:09

Crude oil price today: WTI price bullish at European opening

West Texas Intermediate (WTI) Oil price advances on Thursday, early in the European session. WTI trades at $61.87 per barrel, up from Wednesday's close at $61.62.Brent Oil Exchange Rate (Brent crude) is also up, advancing from the $65.34 price posted on Wednesday, and trading at $65.58.
New
update2025.10.02 15:02

GBP/JPY finds temporary support near 198.00, outlook remains bearish

The downfall in the GBP/JPY pair hits a pause after a three-day losing streak around 198.00 during the Asian trading session on Thursday.
New
update2025.10.02 14:49

WTI rises to near $62.00 on Russia supply concerns

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.90 during the Asian trading hours on Thursday. The WTI drifts higher, snapping the three-day losing streak amid prospects of tougher sanctions on Russian crude. 
New
update2025.10.02 14:28

EUR/GBP remains above 0.8700, downside potential appears due to BoE caution

EUR/GBP inches higher after two days of losses, trading around 0.8710 during the Asian hours on Thursday. The currency cross may further lose ground as the Pound Sterling (GBP) receives support from the cautious remarks from the Bank of England (BoE) officials.
New
update2025.10.02 14:17

USD/INR Price Forecast: Remains sideways near 89.00 from a week

The USD/INR pair ended Wednesday with a 0.2% correction to near 88.83. The pair faced selling pressure on Wednesday after the Reserve Bank of India's (RBI) monetary policy announcement. On Thursday, Indian currency markets are closed on account of Dusshera and Mahatma Gandhi Jayanti.
New
update2025.10.02 14:02

NZD/USD clings to gains near one-week top, around 0.5830 amid a bearish USD

The NZD/USD pair attracts some dip-buyers near the 0.5800 mark during the Asian session on Thursday and turns positive for the fifth consecutive day.
New
update2025.10.02 13:56

AUD/JPY Price Forecast: Keep bullish vibe above 97.00

The AUD/JPY cross gathers strength near 97.35 during the early European session on Thursday. The risk-on sentiment undermines the safe-haven currency like the Japanese Yen (JPY) against the Australian Dollar (AUD). 
New
update2025.10.02 13:37

India Gold price today: Gold steadies, according to FXStreet data

Gold prices remained broadly unchanged in India on Thursday, according to data compiled by FXStreet.
New
update2025.10.02 13:35

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