The NZD/USD currency pair bounced back after testing a low point from four months earlier during the Asian trading session on Monday.
News about efforts to get the US and Iran to stop fighting is affecting the US dollar and helping higher prices for gold and other metals right now.
Geopolitical risks are still a possibility, so it's wise to be careful before expecting any more recovery.
The NZD/USD pair is drawing some buyers close to the 0.5680 level, which is near a low point from four months ago that was tested during the Asian session on Monday. So far, it has ended a two-day period where it was losing value. Right now, the price is just above 0.5700, up about 0.25% for the day, but there doesn't seem to be much room for further gains.
Bloomberg, based on reports from Axios, said the US, Iran, and regional mediators are talking about terms for a possible 45-day pause in fighting, which might lead to an end of the conflict. This news gives a short break to the already shaky global risk feelings and weakens the US Dollar's position as a main currency used worldwide. This could help the NZD/USD currency pair. But investors are still worried because there are ongoing concerns about political tensions in the region.
US President Donald Trump warned that he would attack Iran's civilian sites, like power plants and bridges, if Iran doesn't agree to let ships pass through the Strait of Hormuz by Tuesday. Iran responded by setting a new condition, saying that traffic through the important waterway can start again if some of the money from oil sales is used to pay for damage Iran suffered in the war. However, it seems unlikely that an agreement will be reached in the next 48 hours.
Meanwhile, investors are still concerned that the rise in energy prices caused by the war could bring back inflation. This might push major central banks, like the US Federal Reserve (Fed), to take a tougher approach with interest rates. In fact, traders now think it's more likely the Fed will increase borrowing costs in 2026. This could help the US dollar (USD) strengthen. As a result, it might limit how much the New Zealand dollar (NZD) can go up against the USD, so bullish traders should be careful.
Traders are now expecting the release of the US ISM Services PMI to provide some momentum later in the North American trading session. This comes as liquidity is low in many global financial markets due to the Easter Monday holiday. However, with the current market conditions, it's wise to wait and see if there's enough buying pressure before deciding that the NZD/USD pair has hit a short-term low and is ready for a potential rise.
News about efforts to get the US and Iran to stop fighting is affecting the US dollar and helping higher prices for gold and other metals right now.
Geopolitical risks are still a possibility, so it's wise to be careful before expecting any more recovery.
The NZD/USD pair is drawing some buyers close to the 0.5680 level, which is near a low point from four months ago that was tested during the Asian session on Monday. So far, it has ended a two-day period where it was losing value. Right now, the price is just above 0.5700, up about 0.25% for the day, but there doesn't seem to be much room for further gains.
Bloomberg, based on reports from Axios, said the US, Iran, and regional mediators are talking about terms for a possible 45-day pause in fighting, which might lead to an end of the conflict. This news gives a short break to the already shaky global risk feelings and weakens the US Dollar's position as a main currency used worldwide. This could help the NZD/USD currency pair. But investors are still worried because there are ongoing concerns about political tensions in the region.
US President Donald Trump warned that he would attack Iran's civilian sites, like power plants and bridges, if Iran doesn't agree to let ships pass through the Strait of Hormuz by Tuesday. Iran responded by setting a new condition, saying that traffic through the important waterway can start again if some of the money from oil sales is used to pay for damage Iran suffered in the war. However, it seems unlikely that an agreement will be reached in the next 48 hours.
Meanwhile, investors are still concerned that the rise in energy prices caused by the war could bring back inflation. This might push major central banks, like the US Federal Reserve (Fed), to take a tougher approach with interest rates. In fact, traders now think it's more likely the Fed will increase borrowing costs in 2026. This could help the US dollar (USD) strengthen. As a result, it might limit how much the New Zealand dollar (NZD) can go up against the USD, so bullish traders should be careful.
Traders are now expecting the release of the US ISM Services PMI to provide some momentum later in the North American trading session. This comes as liquidity is low in many global financial markets due to the Easter Monday holiday. However, with the current market conditions, it's wise to wait and see if there's enough buying pressure before deciding that the NZD/USD pair has hit a short-term low and is ready for a potential rise.
