New Zealand Dollar Update
The NZD/USD pair is experiencing a downward trend, currently hovering around 0.5750 during Asian trading hours on Monday. While local economic indicators show some improvement, the New Zealand dollar is still struggling, lacking solid support to halt its decline.
In June, New Zealand’s BusinessNZ Service Performance Index climbed to 50.6, recovering from a revised 48.0 in May. This boost signifies a return to expansion for the services sector, marking its first growth since January.
Moreover, the private sector is showing signs of revival as indicated by a rise in the BusinessNZ performance composite index, which increased to 53.6 in June from a revised 49.9 in May. This is the first overall expansion for New Zealand’s private sector since the beginning of the year. Interestingly, this sharp rise suggests the economy is growing at its fastest rate since December 2025, even though currency markets seem to overlook this information.
At the same time, the risk-sensitive NZD/USD pair has stagnated, especially as the US dollar gains strength amidst escalating geopolitical tensions in the Middle East. Reports from Bloomberg note that US Central Command (CENTCOM) carried out additional strikes over the weekend aimed at diminishing Iran’s capacity to target civilian shipping in the waterways.
According to information from Reuters, US forces have hit over 300 targets in Iran in just three nights, with 140 attacks occurring on Saturday alone. Meanwhile, contradictory statements have emerged from Washington and Tehran about the status of maritime traffic in the strait.
