US Safe-Haven Bid Puts NZD Under Pressure

The US Dollar has surged to safe-haven status following an Israeli airstrike in southern Lebanon, which killed one person and injured 11. The attack, which marked one of Israel's deadliest bombings since the June ceasefire began, triggered a flight-to-safety bid for the Greenback.

Meanwhile, mixed US economic data showed weak ADP private-sector payrolls rose by just 44,000 in July, a sharp drop from June's revised 95,000. However, the ISM Services PMI showed steady momentum, ticking up slightly to 54.1 in July from 54.0 in June.

The New Zealand Dollar (NZD) has come under pressure as soft labor market data reinforced expectations that any further interest rate increases would likely be gradual rather than aggressive. The Reserve Bank of New Zealand (RBNZ) is expected to hike rates by a quarter point in September, following indications from its latest meeting that further policy tightening may be required.