NZD/USD Slides Toward June Low as USD Strength Persists
The New Zealand Dollar (NZD) continues to slide against the US Dollar (USD), reaching its lowest level since late June around mid-0.5600s during the Asian session on Friday.
This marks the third consecutive day of selling pressure for the NZD/USD pair, which is now poised to record losses for a fifth straight week.
The strength of the US Dollar is attributed to rising Federal Reserve (Fed) rate hike bets and surging US bond yields, with traders pricing in an over 65% chance of another interest rate increase in October following the recent 25 basis points hike.
US Treasury Secretary Scott Bessent's comments about extending the US-China trade truce until January 10 have had little impact on the NZD/USD pair, which remains vulnerable to further losses due to its dovish outlook from the Reserve Bank of New Zealand (RBNZ).