The USD to NZD exchange rate is currently bearish as the USD shows signs of weakness.
The anticipated interest rate cuts by the Federal Reserve could further weaken the USD throughout the first half of 2026. Improving global growth and rising commodity prices may also influence expectations for the dollar. Additionally, the shift by ASEAN nations to reduce reliance on the USD could create further downward pressure.
The NZD's strength is supported by a softer USD and expectations of a modest recovery, with forecasts suggesting the NZD will strengthen due to a more stable global outlook. Near-term, the USD/NZD is expected to trade within a flat range, staying relatively close to the current level but potentially moving within a stable range.
Upside risks include a rebound in commodity prices enhancing NZD strength, while downside risks may stem from unexpected U.S. economic data reinforcing the dollar's dominance.