- NZD/USD struggles to lure buyers amid the underlying bullish tone surrounding the USD.
- Bets for smaller Fed rate cuts and elevated US bond yields continue to boost the buck.
- A weaker risk tone also undermines demand for the Kiwi amid dovish RBNZ expectations.
The NZD/USD pair fails to capitalize on the previous day's modest recovery gains and seesaws between tepid gains/minor losses through the Asian session on Wednesday. Spot prices currently trade around the 0.6035-0.6040 region and remain close to over a one-month low touched on Tuesday amid a bullish US Dollar (USD).
The USD Index (DXY), which tracks the Greenback against a basket of currencies, prolongs its monthly uptrend and climbs to its highest level since early August in the wake of bets for a less aggressive policy easing by the Federal Reserve (Fed). In fact, the markets have fully priced out the possibility of another jumbo Fed rate cut in November as the recent US macro data suggested that the economy remains on strong footing.
Apart from this, the risk-off impulse, persistent geopolitical risks stemming from the ongoing conflicts in the Middle East and the US political uncertainty turn out to be other factors underpinning the safe-haven buck. The New Zealand Dollar (NZD), on the other hand, is pressured by expectations that the Reserve Bank of New Zealand (RBNZ) will cut rates aggressively. This further contributes to capping the NZD/USD pair.
From a technical perspective, the recent breakdown below the 200-day Simple Moving Average (SMA) and the lack of buying interest suggest that the path of least resistance for the NZD/USD pair is to the downside. Hence, any attempted recovery move is more likely to attract fresh sellers and remain capped. Traders now look to the US Existing Home Sales data and Richmond Fed President Thomas Barkin's speech for a fresh impetus.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | -0.03% | 0.65% | 0.02% | 0.08% | 0.07% | 0.13% | |
| EUR | 0.01% | -0.00% | 0.66% | 0.06% | 0.12% | 0.09% | 0.15% | |
| GBP | 0.03% | 0.00% | 0.67% | 0.04% | 0.13% | 0.11% | 0.20% | |
| JPY | -0.65% | -0.66% | -0.67% | -0.63% | -0.58% | -0.59% | -0.48% | |
| CAD | -0.02% | -0.06% | -0.04% | 0.63% | 0.06% | 0.07% | 0.16% | |
| AUD | -0.08% | -0.12% | -0.13% | 0.58% | -0.06% | 0.00% | 0.10% | |
| NZD | -0.07% | -0.09% | -0.11% | 0.59% | -0.07% | -0.01% | 0.09% | |
| CHF | -0.13% | -0.15% | -0.20% | 0.48% | -0.16% | -0.10% | -0.09% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick 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).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.