NZD/USD Hits Resistance as Rate Hike Expectations Weigh
The New Zealand dollar has been on a rally, pushing up to 0.5888 and surpassing both short-term exponential moving averages. It's now approaching the resistance level of 0.5900.
However, the NZD/USD seems to be struggling slightly over the last hour, with some pullback possible. This pair has been in a tight range for some time, which could indicate that it's reaching the top of its consolidation area.
New Zealand is highly sensitive to events in the Strait of Hormuz, particularly from an energy perspective. The current calm in the region may be contributing to the NZD/USD's hesitation.
The Reserve Bank of New Zealand (RBNZ) and the Federal Reserve are both expected to raise interest rates again. It will be interesting to see how this plays out, especially given recent softening US economic numbers.