The USD to NZD exchange rate is currently range-bound.
Recent developments show the USD facing downward pressure due to expectations of interest rate cuts by the Federal Reserve, aimed at stimulating the economy. Additionally, the anticipated weaker growth in the US economy could contribute to the USD's decline. Meanwhile, the NZD has not capitalized on strong domestic GDP figures, as market participants remain cautious about the Reserve Bank of New Zealand's (RBNZ) policy expectations.
In the near term, analysts project the USD to trade within a stable range, reflecting recently observed trends. Significant resistance is noted just below its recent highs, which could limit rapid movements.
Upside risks for the NZD include improved trade figures, possibly providing some support to the currency. Conversely, a faster-than-expected series of cuts from the Federal Reserve presents a downside risk, potentially weakening the USD further.