Home Daily Commentaries New Zealand dollar has experienced a notable appreciation against the U.S. dollar

New Zealand dollar has experienced a notable appreciation against the U.S. dollar

Brett Ottawa
Written by
Brett Ottawa

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market.

| Thursday 26 June, 2025

Daily Currency Update

Over the past 24 hours, the New Zealand dollar (NZD) has experienced a notable appreciation against the U.S. dollar (USD), reflecting a broader market shift towards riskier assets. As of today, the NZD/USD exchange rate stands at approximately 0.6033 USD, marking a 0.88% increase from the previous day . This uptick is part of a wider trend where risk-sensitive currencies like the Australian and New Zealand dollars have gained strength following the announcement of a fragile ceasefire between Israel and Iran. The market's optimism, driven by the ceasefire and declining oil prices, has led to reduced demand for the safe-haven U.S. dollar, benefiting currencies of commodity-exporting nations such as New Zealand. Additionally, dovish signals from Federal Reserve officials regarding potential interest rate cuts have further supported the NZD's performance. On the data front yesterday, New Zealand's trade balance has shown positive momentum, reflecting robust export performance. New Zealand recorded a merchandise trade surplus of NZD 970 million in March 2025, more than doubling the NZD 476 million surplus from March 2024. Overall, New Zealand's trade balance in March 2025 reflects a healthy export sector and a positive outlook for its economy.

Key Movers

The US dollar is trading with minor gains on Wednesday, trimming losses after a nearly 1.30% decline on the previous two days. Markets have turned more cautious as the enthusiasm about the ceasefire in the Middle East ebbs, although investors’ hopes that the Fed will cut rates over the next months are limiting upside attempts. On Tuesday, Fed Chairman Jerome Powell resisted President Trump's calls for a rate cut and the divergence within the central bank’s monetary policy committee and confirmed that the central bank is not rushing to cut rates. Powell reiterated that the bank was well-positioned to react to a likely increase in prices as the impact of Trump’s tariffs filter through the US economy and weigh on economic activity. U.S. stock markets experienced a mixed session, reflecting investor caution amid geopolitical developments and economic data. S&P 500 closed virtually unchanged at 6,092.16, just 0.8% below its record high. Nasdaq Composite gained 0.3%, ending at 19,973.55, driven by strength in technology stocks. Dow Jones Industrial Average declined 0.2%, closing at 42,982.43, influenced by sector-specific challenges.

Expected Ranges

  • NZD/USD: 0.5900 - 0.6100 ▲
  • NZD/EUR: 0.5100 - 0.5300 ▲
  • GBP/NZD: 2.2500 - 2.2700 ▼
  • NZD/AUD: 1.0650 - 1.0850 ▼
  • NZD/CAD: 0.8200 - 0.8400 ▲

Written by

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market. He started his foreign exchange career with OFX more than a decade ago, as a private dealer catering to individual clients. He later transitioned to the corporate sector, assuming the position of Corporate Senior Relationship Manager. What truly excites Brett is the opportunity to engage with people, supporting their business growth and sharing in their successes.

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