NZD/USD climbs after hitting a one-month low
The NZD/USD pair moved up on Wednesday, July 31, after falling for five days and touching its lowest level in over a month. It bounced back to around 0.5925–0.5930 in the early Asian session, as the US dollar weakened slightly.
The US dollar lost some strength after Federal Reserve Chair Jerome Powell said the Fed is not ready to cut interest rates soon. His comments kept the market cautious, but didn’t fully support the dollar. This allowed the New Zealand dollar to recover a bit.
Also, global stock markets showed signs of recovery, which reduced the demand for safe-haven assets like the US dollar. This helped risk-based currencies such as the NZD. However, weak economic data from China added pressure on the New Zealand economy, since China is one of its major trade partners. This limited the Kiwi’s upside.
Meanwhile, US-China trade talks ended without a clear deal. The 90-day tariff pause may or may not be extended, depending on further political decisions. This adds more uncertainty for the markets.
Now, traders are focusing on the upcoming US PCE inflation data, which is a key indicator for the Fed’s next move. The results could impact the NZD/USD forecast in the coming days.
Impact:
NZD/USD might rise if the US dollar stays weak or inflation data is soft. But it could fall again if the Fed stays firm on high rates or trade tensions grow.