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NZD/USD Resistance and Support Analysis
New Zealand Dollar’s performance in October shows varying percentages against major currencies. It fared well against the Japanese Yen but showed a decrease against the US Dollar, Euro, and others.
The heat map provides data on currency fluctuations against each other for the month. USD is up 1.09% against the Euro, while the NZD decreased by 1.33% against the USD.
Christian Borjon Valencia authored the analysis for FXStreet. The content serves informational purposes and doesn’t recommend financial transactions.
Trading Strategies for NZD/USD
The New Zealand Dollar continues its downtrend, hovering near 0.5718 after failing to meaningfully rally. We see this as a clear sign of bearish sentiment, with sellers remaining in control below the key resistance level of 0.5754. The path of least resistance appears to be downwards in the coming weeks.
We recall that the Reserve Bank of New Zealand (RBNZ) has held its Official Cash Rate at a restrictive 5.50% throughout 2024 and 2025 to combat persistent inflation. Recent data now shows New Zealand’s GDP growth for the second quarter slowed to just 0.5% year-over-year, increasing market speculation of future rate cuts. This economic fragility, especially with Fonterra forecasting a slightly lower milk payout, continues to weigh heavily on the Kiwi dollar.
On the other side, Fed Chair Powell’s recent neutral tone suggests the US rate-hiking cycle that peaked in 2023 is over, but rate cuts are not yet imminent. While US inflation has cooled significantly from its highs, the September 2025 CPI data came in at a sticky 2.9%, keeping the Fed in a holding pattern. This policy divergence, where the RBNZ may be forced to cut rates sooner than the Fed, should continue to favor the US Dollar.
