NZD\/USD fell 0.14% on Tuesday and ended near 0.5960 after a narrow session. It remains above key moving averages, but price action has made lower highs since a peak near 0.6090 in early February while holding above 0.5940, forming a descending wedge.<\/p>\n
The RBNZ kept its rate at 2.25% in February, and its updated track shifted the first possible rise to late 2026 at the earliest. Overnight index swaps eased by about eight basis points, and the market-implied chance of a September hike dropped to about 40% from 68% before the meeting.<\/p>\n
The RBA raised its rate to 3.85% earlier in February, widening the policy gap. In the US, consumer confidence rose to 91.2 in February, but the expectations index has been below 80 for 13 straight months.<\/p>\n
A new 15% global tariff announcement by Donald Trump added risk-off pressure. On technicals, the Stochastic Oscillator turned bearish and moved towards oversold; a break below 0.5940 would point to the 50-day EMA, while a move back above 0.6000 could open a return towards 0.6090.<\/p>\n
The Reserve Bank of New Zealand has shifted our expectations significantly, pushing the first potential rate hike to late 2026. This dovish pivot contrasts sharply with the Reserve Bank of Australia, which raised its rates to 3.85% earlier this month. This growing policy divergence is likely to put a ceiling on any NZD\/USD rallies in the coming weeks.<\/p>\n
Adding to the bearish outlook, weakness is apparent in New Zealand’s key export drivers. China’s latest Caixin Manufacturing PMI for January came in at a contractionary 49.5, and the Global Dairy Trade Price Index has fallen for three straight auctions, with a recent drop of 2.1%. These factors point to lower export income and weigh on the currency’s value.<\/p>\n
On the other side of the pair, former President Trump’s proposed 15% global tariff is generating a risk-off mood, which typically benefits the US dollar as a safe haven. While US consumer confidence is soft, Fed funds futures still suggest a potential for one more rate hike by June, keeping the policy path tilted in the dollar’s favor against the Kiwi. We saw how similar tariff discussions back in the 2018-2019 period consistently supported the dollar over commodity currencies.<\/p>\n
We should be looking for opportunities to position for further downside, given the bearish technical and fundamental picture. A decisive break below the 0.5940 support level would be a key signal, potentially opening a path toward the 50-day moving average. Buying put options could be a prudent strategy to capitalize on this expected downward momentum while managing risk.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" NZD\/USD slips to 0.5960; descending wedge forms as RBNZ dovish, tariffs weigh; key levels 0.5940-0.6000.<\/p>\n","protected":false},"author":62,"featured_media":16999,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-42761","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/42761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=42761"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/42761\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16999"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=42761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=42761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=42761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}