NZD/USD traded around 0.5890 on Tuesday, down 0.35% on the day after failing to hold above the 0.5900 level. As the US dollar (USD) strengthens, the pair moves lower due to increased demand for safe-haven assets.
The greenback benefits from continued geopolitical uncertainty related to the impasse in talks between the United States (US) and Iran. US President Donald Trump is unlikely to accept Iran’s proposal regarding the Strait of Hormuz, while the lack of progress on the nuclear issue is fueling risk aversion and weakening the US currency.
Additionally, the US dollar is supported by expectations of higher long-term interest rates from the Federal Reserve (Fed). The market widely expects a pause at this week’s meeting, with rates expected to be in the range of 3.50%-3.75%. However, the resilience of some economic indicators, such as the Conference Board consumer confidence index, which rose to 92.8 in April, supports US yields and, in turn, the US currency.
Meanwhile, investors remain cautious ahead of the Federal Open Market Committee (FOMC) decision on Wednesday, keeping a close eye on signals on the future policy path, even as the market continues to look ahead to year-end monetary easing.
On the New Zealand side, the New Zealand Dollar (NZD) finds some support from expectations of a more restrictive monetary policy stance. The Reserve Bank of New Zealand (RBNZ) may maintain a cautious stance or even consider tightening to bring inflation back to its 2% target midpoint. Following stronger-than-expected inflation data, markets are already anticipating a possible rate hike as early as May.
This gap between a stable Fed supported by higher yields and a potentially more hawkish RBNZ should help limit downside in NZD/USD.
US dollar price today
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed today. The US dollar was strongest against the Swiss franc.
| USD | EUR | gbp | JPY | scurvy | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.06% | 0.14% | 0.08% | 0.36% | 0.03% | 0.37% | 0.47% | |
| EUR | -0.06% | 0.06% | 0.00% | 0.28% | -0.06% | 0.25% | 0.40% | |
| gbp | -0.14% | -0.06% | -0.06% | 0.22% | -0.11% | 0.21% | 0.33% | |
| JPY | -0.08% | 0.00% | 0.06% | 0.28% | -0.05% | 0.26% | 0.38% | |
| scurvy | -0.36% | -0.28% | -0.22% | -0.28% | -0.34% | -0.03% | 0.11% | |
| AUD | -0.03% | 0.06% | 0.11% | 0.05% | 0.34% | 0.32% | 0.47% | |
| NZD | -0.37% | -0.25% | -0.21% | -0.26% | 0.03% | -0.32% | 0.12% | |
| CHF | -0.47% | -0.40% | -0.33% | -0.38% | -0.11% | -0.47% | -0.12% |
The heat map shows the percentage change of major currencies against each other. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you select US Dollar from the left column and move to Japanese Yen along the horizontal line, the percentage change displayed in the box will represent USD (base)/JPY (quote).
