Snapshot: NZD/USD is currently trading at 0.5882, up 0.45% on the day, driven by broad dollar weakness as the DXY slips to 98.36. A dovish repricing of the US yield curve, with the US 10Y falling 2.6bp to 4.302%, is supporting the Kiwi. Watch for Trump’s speech at 17:00 London.
- Breaching 0.5883 opens a run toward 0.5900.
- Rising crude oil prices could feed into RBNZ policy concerns as the impact of higher energy costs intensifies.
Bias into NY: We favor further NZD/USD upside while the DXY remains under pressure and US yields stay soft. Look for a test of 0.5900 in early New York trade.