NZD Holds Ground as Weak US Durable Goods Data Fails to Spark Dollar Rally

The New Zealand Dollar (NZD) has held its ground against the US Dollar (USD) despite weak US durable goods data. NZD/USD trades near the 0.5790 area, struggling to extend its recovery from recent losses.

Modest weakness in the USD helped the NZD receive some support, particularly from the sharp decline in oil prices. Lower energy costs improve New Zealand's outlook, which relies heavily on imported fuel.

The US Durable Goods Orders increased just 0.3% month-over-month (MoM) in June, falling short of the 1.6% market forecast after a revised 4.0% decline in May. However, orders excluding transportation rose 0.6%, and those excluding defense increased 0.3%, indicating that underlying business demand remained relatively resilient.

The softer headline reading limited demand for the Greenback, but its impact on NZD/USD was modest as investors avoided large positions ahead of the Federal Reserve's monetary-policy decision.