NZD/USD Surges Near Six-Week High as US Treasury Buyback Plan Weighs on Dollar

The NZD/USD currency pair rose to about 0.5980 on Tuesday, nearing its highest level since June 1st, as a softer US Dollar and firm Reserve Bank of New Zealand rate-hike expectations lifted the Kiwi.

The USD remained under pressure after the US Treasury outlined plans to expand buybacks of longer-dated bonds, with reports saying US Secretary Scott Bessent can draw up to $1 trillion from the Treasury General Account to fund the purchases. Lower yields followed, while an earlier safe-haven bid linked to Middle East tensions ebbed after the US said the Strait of Hormuz was free of mines.

The pair is technically holding above the 20-period Simple Moving Average near 0.5967 and the 100-period SMA around 0.5900, with resistance at 0.5983 and an RSI near 62. Support levels are seen at 0.5971, then 0.5967-0.5965, with 0.5944 below.