Kiwi edges lower as investors eye NZ employment data and US dollar strength

Daily Currency Update

Overnight, the New Zealand Dollar (NZD) experienced a modest decline against the US Dollar (USD), falling about 0.13% to close near US $0.5960. The pair traded within a narrow range, with intraday highs around $0.5973 and lows near $0.5939. This slight softening in the NZD was largely driven by a firmer USD, supported by steady U.S. Treasury yields and ongoing expectations of economic resilience in the United States. With no major domestic data releases from New Zealand to provide fresh momentum, the NZD largely followed broader market sentiment. The subdued trading session reflected a cautious investor mood, with attention shifting toward upcoming economic indicators and central bank commentary for clearer guidance. Overall, the NZD’s performance was soft but stable, showing no significant directional breakout. Looking ahead, the NZD/USD appears poised for a soft to neutral session, drifting just above the 0.5900 level. The Kiwi remains under modest pressure after positive services data from China failed to provide a boost, while a recovering US dollar is adding downward momentum. Market focus will be on today’s New Zealand employment report, which could influence the Reserve Bank of New Zealand’s outlook and either support or weigh further on the NZD. Meanwhile, US services sector data may reinforce or ease pressure on the USD depending on the results. With markets increasingly pricing in Federal Reserve rate cuts in the months ahead, a softer dollar could tilt sentiment in favor of the NZD. Monetary policy remains accommodative in New Zealand; although recent RBNZ rate cuts have lowered the benchmark rate to 3.25%, the central bank has kept rates steady recently amid global uncertainties, signaling further easing may be on the horizon. Technically, the NZD is likely to find support near 0.5890, with upside resistance around the 0.5940–0.5950 range.