NZD Extends Losses Amid Weakened Inflation Expectations and Geopolitical Tensions

The New Zealand Dollar (NZD) extended its losses for the fourth consecutive day, trading around 0.5840 during Asian hours on Thursday.

This decline follows the release of RBNZ Inflation Expectations, which showed a decrease in two-year inflation expectations to 2.34% in Q3 2026 from 2.53% in Q2.

The NZD/USD pair may find support if the Reserve Bank of New Zealand (RBNZ) delivers another quarter-point rate increase next month, as expected by some analysts.

However, the US Dollar (USD) has recovered its daily losses due to escalating geopolitical tensions between the US and Iran, with a senior Iranian official stating that Washington and Tehran remain at loggerheads over a permanent end to conflicts in the Gulf.