Image © Adobe Images
Analysts at ANZ see some bullish price action emerging in the major New Zealand dollar exchange rates, indicating the potential for further gains.
"The Kiwi is up a touch again this morning, thanks to a pullback in the USD DXY index as we approach the House vote on a funding bill that will end the shutdown (the bill has already passed in the Senate) and as U.S. ADP jobs data underwhelmed," says ANZ analyst David Croy.
The New Zealand dollar is one of the worst-performing major currencies of 2025, amidst a spell of chronic underperformance.
However, the prospect of a counter-trend retracement of that weakness is emerging, offering some tactical opportunities for NZD sellers:
- The New Zealand dollar is 0.80% stronger against the pound this week, pressing GBP/NZD lower from 2.3397 to 2.3196.
- It's half a per cent higher against the euro, with EUR/NZD down from 2.05572 to 2.0454.
- NZD/USD is half a per cent up on the week at 0.5654.
ANZ's Croy says NZD "still has some ground to cover" against the USD in order to shift the outlook onto a firmer footing, but a break out of a technical downtrend channel could be in the offing.
"If it is to break out of its 4-month downtrend... that may encourage the bulls," he explains.
Above: NZD strength pushes some key pairs lower. Top: GBP/NZD, mid: EUR/NZD and NZD/USD at bottom.