empty
17.06.2025 08:39 PM
NZD/USD. Analysis and Forecast

This image is no longer relevant

At present, NZD/USD is demonstrating moderate activity and attracting buyers. However, a strong continuation of the upward movement has yet to materialize, as the market remains within its familiar weekly range.

The US dollar continues to struggle to attract buying interest, staying near a three-year low. This three-year low acts as a key support factor for the NZD/USD pair, as dollar weakness supports the appreciation of the New Zealand dollar.

Market participants are factoring in the possibility of the Federal Reserve resuming its rate-cutting cycle in September due to signs of economic slowdown and declining inflation. Meanwhile, uncertainty over US trade relations and fiscal issues keeps dollar bulls in a defensive stance.

This image is no longer relevant

The New Zealand dollar is receiving support from domestic data: the food price index rose from 3.8% in April to 4.4% last month — the highest level since December 2023. This data aligns with expectations of further interest rate cuts by the Reserve Bank of New Zealand (RBNZ), which provides additional backing for the pair.

Nonetheless, traders are showing caution ahead of key central bank events and are refraining from opening new aggressive positions.

The Fed's rate decision is expected on Wednesday; current policy is likely to be maintained, with potential comments on the future path of rate cuts. Traders should pay close attention to Chair Jerome Powell's remarks during the press conference.

Today's important US retail sales data could provide an additional impulse later during the North American session.

On a broader scale, ongoing geopolitical tensions in the Middle East are introducing risk aversion, prompting investors to seek safe havens — thus limiting gains for risk-sensitive currencies such as the New Zealand dollar (NZD).

From a technical standpoint, NZD/USD remains on an upward trajectory, with daily chart oscillators holding in positive territory and far from overbought levels, supporting a bullish outlook.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Irina Yanina
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Dollar Extends Its Advantage

Many traders yesterday awaited remarks from Federal Reserve Governor Michelle Bowman. However, her speech, which focused on banks, AI, and cryptocurrencies, hardly had a serious impact on the currency market

Jakub Novak 11:19 2025-08-20 UTC+2

The Pound Rises on Inflation Data

According to the report, inflation in the United Kingdom increased for the second consecutive month in July, adding pressure on the Bank of England to reconsider the pace

Jakub Novak 10:58 2025-08-20 UTC+2

AUD/NZD. Analysis and Forecast

Today, the AUD/NZD pair gained strength following the RBNZ's rate decision, pushing spot prices above the psychological level of 1.1000 and reaching their highest since early March. As expected

Irina Yanina 10:54 2025-08-20 UTC+2

The Market – A Lone Warrior

In a thin summer market, where trading volumes on the New York Stock Exchange have fallen to their lowest levels since early May, even a single company can drag

Marek Petkovich 10:13 2025-08-20 UTC+2

Tension in the Markets Is Rising. Investors Are Still Hoping for Fed Rate Cuts (there is a chance of renewed growth in #USDX and Ethereum)

The stock market rally in the U.S. stumbled on reduced expectations of a Fed rate cut at the September central bank meeting. Why is this happening, and will the central

Pati Gani 09:31 2025-08-20 UTC+2

What to Pay Attention to on August 20? A Breakdown of Fundamental Events for Beginners

Only two macroeconomic releases are scheduled for Wednesday. The UK and the eurozone will publish consumer price indices for July. The European report is released in two estimates

Paolo Greco 07:26 2025-08-20 UTC+2

EUR/USD Overview – August 20: Just a Pause. Period

The EUR/USD currency pair on Tuesday (as in recent days) traded in an ultra-calm manner. On Monday, it declined, on Tuesday, it grew slightly, but overall, recent moves have taken

Paolo Greco 03:38 2025-08-20 UTC+2

GBP/USD Overview – August 20: Technicals and Nothing but Technicals

On Tuesday, the GBP/USD currency pair continued its sluggish downward movement. In principle, there is no point discussing anything other than the technical picture right now. This week, apart from

Paolo Greco 03:38 2025-08-20 UTC+2

Yen Remains in Range

Japan's real GDP grew by 0.3% quarter-on-quarter (1.0% y/y) in the second quarter of 2025, exceeding Bloomberg's market forecast (+0.1% q/q, +0.4% y/y). This marked the fifth consecutive quarter

Kuvat Raharjo 00:58 2025-08-20 UTC+2

NZD/USD. RBNZ August Meeting: Preview

On Wednesday, August 20, the Reserve Bank of New Zealand will conclude its latest meeting, where it may reduce the interest rate by 25 basis points—from 3.25% to 3.0%

Irina Manzenko 00:58 2025-08-20 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.