{"id":325803,"date":"2026-03-03T01:07:16","date_gmt":"2026-03-03T01:07:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/325803\/"},"modified":"2026-03-03T01:07:16","modified_gmt":"2026-03-03T01:07:16","slug":"nzd-usd-weakens-as-risk-off-sentiment-lifts-the-us-dollar","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/325803\/","title":{"rendered":"NZD\/USD weakens as risk-off sentiment lifts the US Dollar"},"content":{"rendered":"

NZD\/USD trades under pressure on Monday as the New Zealand Dollar (NZD) weakens against the US Dollar (USD) amid escalating geopolitical tensions in the Middle East.<\/p>\n

At the time of writing, the pair is trading around 0.5939 after dipping to 0.5916 earlier in the day, its lowest level since January 23.<\/p>\n

Safe-haven demand for the Greenback strengthens after the United States (US) and Israel launched joint strikes on Iran over the weekend, weighing on risk-sensitive currencies such as the Kiwi.<\/p>\n

However, the NZD struggles to attract strong selling pressure as investors weigh monetary policy divergence between the Reserve Bank of New Zealand and the Federal Reserve<\/a> (Fed).<\/p>\n

Markets widely expect the Reserve Bank of New Zealand (RBNZ) to keep interest rates<\/a> unchanged through most of 2026, though some economists see the possibility of another rate hike later in the year if the economic recovery strengthens and inflation remains sticky.<\/p>\n

In contrast, markets still price in roughly 50 bps of Fed interest rate cuts in the second half of the year, though resilient economic data, a stabilising labour market and persistent inflation pressure have prompted traders to trim expectations for near-term monetary policy easing.<\/p>\n

On the daily chart, the near-term bias is slightly bearish to neutral. NZD\/USD is trading below the 21-day SMA near 0.6005, while still holding above the rising 50-day SMA around 0.5907, which continues to provide support.<\/p>\n

Momentum indicators suggest a modest cooling in bullish pressure. The Relative Strength Index (RSI) has retreated from earlier overbought levels and is currently hovering near 45, pointing to weakening upside momentum.<\/p>\n

Meanwhile, the Moving Average Convergence Divergence (MACD) remains below its signal line and beneath the zero level, with the histogram turning negative, reinforcing the developing downside bias in the near term.<\/p>\n

Despite the pullback, the broader outlook<\/a> remains constructive, with price action forming a bullish flag-and-pole pattern. A break above the 0.6000 psychological level, which aligns with the upper boundary of the flag, could trigger fresh upside momentum toward 0.6100 and beyond.<\/p>\n

On the downside, a break below the 50-day SMA or the lower boundary of the flag would weaken the bullish structure and shift the bias lower, exposing 0.5850 as the first support, followed by 0.5700.<\/p>\n

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