The NZD/USD pair is sliding toward 0.5900, weighed down by growing expectations of a dovish stance from the Reserve Bank of New Zealand (RBNZ) and escalating geopolitical tensions. Investors are pricing in the possibility of no further rate hikes, particularly as New Zealand’s economic data signals a slowdown. This shift has dampened demand for the New Zealand dollar, even as broader risk-off sentiment strengthens the U.S. dollar’s appeal.
Market participants remain cautious amid rising global geopolitical risks, further pressuring risk-sensitive currencies like the NZD. The combination of softening rate hike expectations and uncertainty in global markets is likely to keep the pair under pressure in the near term. Traders are now focused on upcoming economic indicators from the U.S. and New Zealand for clearer direction.
