NZD/USD Plunges to Seven-Week Lows Amid Dovish RBNZ and Escalating Tensions
The NZD/USD pair has plummeted to its lowest level since July 29, settling at around 0.5780 during the early European session.
This decline comes on the back of a fundamental backdrop that suggests the path of least resistance for spot prices remains downwards.
Lifting market bets of a Federal Reserve interest rate hike this week was last week's US inflation figures, while further escalation of tensions between the US and Iran has lent additional support to the safe-haven USD.
The Reserve Bank of New Zealand's dovish outlook has also contributed to the NZD/USD pair's bearish tone.