The New Zealand Dollar (NZD) is likely to stay between 0.6005 and 0.6040 against the US Dollar (USD). Recent trends show that the upward movement of the NZD is slowing down, making it less likely to reach 0.6080. Last week, the NZD dropped to 0.6000 but bounced back without much downward pressure. If it falls below 0.5985, it could signal a shift to range trading instead of rising.

Currency Movement Trends

The EUR/USD is under bearish pressure, dropping towards 1.1650 after a trade deal between the EU and the US. At the same time, GBP/USD is also dropping towards 1.3400 due to capital moving away from the Euro, influenced by USD strength. Gold is trading below $2,400 as market sentiment improves following the EU-US trade agreement. Higher US Treasury yields are preventing a rebound in Gold prices. This week promises significant developments with the US trade deadline, the Federal Reserve’s interest rate decision, and the Nonfarm Payrolls report. The Fed is facing questions about its delayed rate cuts amid an uncertain tariff environment and a strong economy.

Monetary Policies And Market Implications

The New Zealand Dollar is stabilizing against a strong US Dollar and is likely to remain in a new trading range. The Reserve Bank of New Zealand recently indicated that interest rates will stay high into 2025, supporting the NZD. However, a drop below 0.6080 would indicate increasing downward pressure. Traders should monitor these key levels for potential losses rather than expecting a strong rally. With the European Central Bank expected to cut interest rates in June, we foresee ongoing pressure on the EUR/USD. This difference in policies is also affecting the GBP/USD, as investments flow to the higher-yielding dollar. Traders should be cautious, as any rallies in these currency pairs may be brief and offer selling opportunities. Gold continues to be impacted by rising US Treasury yields, with the 10-year yield consistently above 4.5%. This makes gold, which does not earn interest, less appealing, keeping prices under $2,400 per ounce. Without a notable change in market sentiment or a drop in yields, it will be hard for gold to gain momentum. The next few weeks will be crucial for US data, including the Nonfarm Payrolls report and the Federal Reserve’s interest rate decision. With inflation data remaining stubbornly high, the central bank is expected to keep rates steady, which will strengthen the dollar. We advise positioning for increased volatility through options ahead of these impactful events. Create your live VT Markets account and start trading now.

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