Kiwi Retreats on Geopolitical Tensions and Higher Oil Prices

The New Zealand Dollar (NZD) has retreated slightly against the US Dollar (USD), trading near 0.5880, about 0.20% lower than its recent high just above 0.5900.

This move is largely due to the USD's strength, which is supported by rising geopolitical tensions and higher crude oil prices.

The ongoing conflict in the Middle East, particularly the Strait of Hormuz, has pushed oil prices up, reinforcing concerns about inflation and bolstering expectations that the US Federal Reserve (Fed) could deliver at least one interest rate increase in 2026.

Additionally, softer Chinese inflation data has weighed on antipodean currencies like the NZD, contributing to the current slide in NZD/USD.