empty
07.05.2025 07:31 PM
NZD/USD. Analysis and Forecast

This image is no longer relevant

The NZD/USD pair is pulling back from a more than two-week high in the 0.6025–0.6030 level. Currently, the quotes have fallen below the psychological level of 0.6000, signaling a pause in the three-day winning streak amid a mix of influencing factors.

This image is no longer relevant

Among the key drivers of this move are positive global sentiment sparked by news of U.S.-China trade talks taking place in Switzerland. Additionally, New Zealand's labor market data showed a steady unemployment rate of 5.1% in Q1 2025, which slightly exceeded expectations and provided modest support for NZD/USD. The number of employed people rose by 0.1% after a 0.2% decline in the previous quarter, which also helped to support the pair.

However, the initial optimism proved to be short-lived. The modest employment growth and slowing wage increases leave room for further interest rate cuts by the Reserve Bank of New Zealand (RBNZ), potentially lowering the rate to 2.75% by the end of the year. These expectations were reinforced by the latest RBNZ Financial Stability Report, which highlighted risks to domestic economic growth.

In addition, modest U.S. dollar strength is weighing on NZD/USD, although USD bulls are mostly waiting for the outcome of the upcoming FOMC meeting.

This image is no longer relevant

The Federal Reserve is expected to announce its decision on Wednesday, and market focus will be on the accompanying policy statement and Fed Chair Jerome Powell's comments for insight into the rate-cut path. These developments will significantly impact demand for the U.S. dollar and, accordingly, the movement of the NZD/USD pair.

Thus, traders' current focus is on the 0.6000 level as a key psychological marker, as well as on the upcoming news from the Fed, which could shift market momentum. For now, since oscillators on the daily chart remain in positive territory, the path of least resistance for the pair remains to the upside. However, intraday, the pair may continue correcting lower.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY. Analysis and Forecast

The Japanese yen is showing weakness against the stronger U.S. dollar, with the USD/JPY pair reaching a new monthly high. This rise in the dollar against the yen is mainly

Irina Yanina 20:12 2025-06-19 UTC+2

Bank of England to Keep Rates Unchanged

Today, the Bank of England is expected to keep interest rates at 4.25% and signal that it is maintaining its approach of one cut every other meeting, as policymakers

Jakub Novak 11:02 2025-06-19 UTC+2

The Fed Maintains Its Previous Position

The U.S. dollar responded with growth, while risk assets such as the euro and pound declined. Following yesterday's meeting, Federal Reserve officials stated they expect two interest rate cuts

Jakub Novak 10:58 2025-06-19 UTC+2

The Iran-Israel War Has Yet to Exert Significant Negative Influence on Markets (Limited downside risk for gold and upward momentum for #USDX remains possible)

As expected, the U.S. central bank left all key monetary policy parameters unchanged, once again citing ongoing uncertainty about the future state of the national economy—a factor that has become

Pati Gani 09:14 2025-06-19 UTC+2

The Market Keeps Its Options Open

While the White House and the Federal Reserve are in wait-and-see mode, the market has also decided to hold steady. Donald Trump has yet to make a final decision

Marek Petkovich 09:08 2025-06-19 UTC+2

What to Pay Attention to on June 19? A Breakdown of Fundamental Events for Beginners

No macroeconomic reports are scheduled for Thursday. The only points of attention today will be Christine Lagarde's speeches and the results of the Bank of England meeting, which will

Paolo Greco 06:45 2025-06-19 UTC+2

GBP/USD Overview – June 19: UK Inflation and the Bank of England Meeting

The GBP/USD currency pair traded relatively calmly on Wednesday, though the day before, it had posted a substantial decline in the second half of the session—more than 100 pips

Paolo Greco 04:02 2025-06-19 UTC+2

EUR/USD Overview – June 19: Trump Continues to Work Wonders

The EUR/USD currency pair traded more calmly on Wednesday than the previous day. However, the previous day's significant movement also began only closer to the evening. It was not related

Paolo Greco 04:02 2025-06-19 UTC+2

GBP/USD. Inflation, the Bank of England, and Geopolitics

GBP/USD traders did not react to the UK inflation growth report that was published on Wednesday, just before the June Bank of England meeting. The focus of the market remains

Irina Manzenko 00:42 2025-06-19 UTC+2

The Canadian Dollar Still Looks Like a Favorite

Markets remain cautious as several high-impact events loom that could significantly alter the risk balance—namely, the FOMC meeting on Wednesday evening and a potential U.S. intervention in the war between

Kuvat Raharjo 00:42 2025-06-19 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.