Pound Rally Against New Zealand Dollar Stalls Ahead of July Peak

The pound's rally against the New Zealand dollar may be losing steam as it approaches the July peak, according to analysts.

The Kiwi has been underperforming its major currency peers, and recent gains in the GBP/NZD exchange rate have been sold into. The pair currently trades at 2.3383, having closed Friday at 2.3406, with a confluence of moving averages forming around 2.30 to 2.31.

This level has become a support band for the market, and analysts expect a pullback towards this area this week. A daily close above 2.3540 would put the rally back in charge, but risks favour a correction.

The Kiwi's fate is largely tied to global sentiment, particularly following Thursday's meeting between Presidents Trump and Xi in Washington. An extension of the US-China trade truce could hand the Kiwi a recovery, with improved risk appetite drawing buyers back into high-beta currencies like the New Zealand dollar.