The NZD/USD pair climbed above the 0.5750 mark on Wednesday, recovering from recent lows as risk sentiment improved. This rebound comes amid market anticipation of critical economic data and central bank updates, with traders monitoring developments in the U.S. dollar, which remains robust due to the Federal Reserve’s hawkish tone.
Despite the gains, the bullish U.S. dollar could limit the kiwi’s upside. The greenback continues to draw strength from higher Treasury yields and expectations of prolonged monetary tightening, posing a challenge for risk-sensitive currencies like the New Zealand dollar. Investors now await key U.S. inflation data and comments from Fed officials to gauge the pair’s next move.
