Kiwi Rebounds on Soft US Inflation Data

The New Zealand Dollar (NZD) has rebounded from its two-week low of 0.5820 to trade above 0.5850 in Friday's Asian session.

This move comes as softer inflation data from the US, particularly the Consumer Price Index (CPI) and Producer Price Index (PPI), have reduced immediate Federal Reserve rate-hike expectations, pressuring the US Dollar.

However, geopolitical tensions involving the US and Iran, along with regional maritime risks, are supporting demand for safe-haven assets like the US Dollar, limiting the NZD/USD pair's upside potential.