empty
22.05.2025 12:18 PM
NZD/USD. Analysis and Forecast

This image is no longer relevant

The NZD/USD pair is pulling back after reaching a weekly high around the 0.5965–0.5970 level and is currently trading near 0.5920, marking a new daily low. The release of New Zealand's budget has influenced the market, though the pair's decline is somewhat cushioned by a pause in U.S. dollar selling.

This image is no longer relevant

The New Zealand government displayed fiscal prudence by forecasting a narrower budget deficit for the next fiscal year. While this could be seen as a positive signal, fiscal caution is also taking place amid economic challenges and trade uncertainty, increasing the likelihood of further rate cuts by the Reserve Bank of New Zealand (RBNZ). These factors are pressuring the New Zealand dollar and, consequently, the NZD/USD pair.

On the other hand, the bias against the U.S. dollar persists due to concerns over the U.S. budget and potential consequences of President Trump's new legislative proposals. The market is also pricing in a possible rate cut by the Federal Reserve, which weakens the dollar and helps limit losses for the New Zealand dollar in the NZD/USD pair.

Nevertheless, NZD bulls should exercise caution due to renewed trade tensions between the U.S. and China. China has accused the U.S. of abusing export control measures and violating the Geneva Trade Agreements after the U.S. issued guidance warning companies against using Huawei Ascend AI chips. The escalation in tensions and China's accusations could reduce demand for risk-sensitive currencies such as the New Zealand dollar. This introduces additional risks for investors and calls for caution when considering market entries or opening long positions on the NZD/USD pair.

From a technical standpoint, oscillators remain in positive territory, confirming the still-bullish outlook. However, if the pair drops below the 200-day Simple Moving Average (SMA), the probability will shift in favor of the bears.

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

GBP/USD Overview – June 4: Trump Is Only Interested in the Big Fish

The GBP/USD currency pair traded lower on Tuesday, but the decline was weak, just like the volatility. Just look at the most recent stretch of the GBP/USD movement

Paolo Greco 03:41 2025-06-04 UTC+2

EUR/USD Overview – June 4: Words, Words... Where Are the Actions?

The EUR/USD currency pair traded relatively calmly throughout Tuesday, and the U.S. dollar even managed to gain slightly. However, we wouldn't pay much attention to a dollar rise

Paolo Greco 03:41 2025-06-04 UTC+2

The U.S. Economy Will Suffer More Than Others from Tariffs

Donald Trump is jeopardizing his own economy. This was the conclusion reached by the G-20 countries at their recent summit. According to summit participants, the discussions focused on the trade

Chin Zhao 00:28 2025-06-04 UTC+2

EUR/USD. Failed Assault on the 1.14 Level: Bears Retreat but Do Not Surrender

Buyers of EUR/USD started the trading week vigorously, testing the resistance level at 1.1450 (the upper line of the Bollinger Bands indicator on the daily chart) and updating a six-week

Irina Manzenko 00:27 2025-06-04 UTC+2

Euro: Trouble Has Arrived – Open the Gates!

Trouble came from where it was least expected. Frustrated by its coalition partners' refusal to support its immigration control plans, the Freedom Party dismantled the Dutch government. The country will

Marek Petkovich 00:27 2025-06-04 UTC+2

The dollar cannot find a reason to strengthen

The CFTC report showed that expectations for a reversal in the dollar have not materialized. After three weeks of relative stability, during which the total short position

Kuvat Raharjo 19:16 2025-06-03 UTC+2

The Pound Rises Against All Odds

The manufacturing PMI in May came in above expectations, but that was where all the positivity ended — 46.6 points, still below the expansion zone, and there's no talk

Kuvat Raharjo 19:09 2025-06-03 UTC+2

USD/JPY. Analysis and Forecast

The USD/JPY pair is showing mixed dynamics: despite the general recovery of the US dollar, the Japanese yen is under pressure from intraday sellers amid a combination of negative factors

Irina Yanina 18:27 2025-06-03 UTC+2

GBP/USD. Analysis and Forecast

The GBP/USD pair is attracting sellers today, pulling back from yesterday's high. This pullback is associated with a moderate strengthening of the US dollar, which is exerting pressure

Irina Yanina 18:24 2025-06-03 UTC+2

Traders Didn't Believe the Japanese Regulator

The Japanese yen lost some ground against the US dollar after Bank of Japan Governor Kazuo Ueda hinted today that the central bank may continue to slow the pace

Jakub Novak 11:16 2025-06-03 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.