The NZD/USD pair is gaining strength and is approaching 0.5745 during the early European session on Monday.
Fed's Powell said the threat of indictment is just an excuse to push for higher rates.
The RBNZ's tight stance might support the Kiwi.
The NZD/USD pair moves up to about 0.5745 in the early European session on Monday. The US Dollar is weaker against the Kiwi because there are new worries about the US Federal Reserve's independence. Traders are watching for the US Consumer Price Index (CPI) inflation data, which will come out later on Tuesday and could give more direction.
Tensions between the White House and the Federal Reserve got worse over the weekend. Fed Chair Jerome Powell said the administration had threatened to file criminal charges against him because of the renovation of the central bank's main building. Powell said these threats were just an excuse to push the Fed into lowering interest rates. The news caused some pressure on the dollar, making it less attractive, and could help other currency pairs.
Ray Attrill, who leads currency strategy at the National Australia Bank, said, "This open conflict between the Fed and the U.S. government ... is definitely not good for the U.S. dollar."
The Reserve Bank of New Zealand (RBNZ) has a cautious stance on future interest rate decisions, which might help the New Zealand Dollar (NZD). The bank says it's probably done with lowering rates, but it's still open to more cuts if the economy doesn't go as well as expected. Most economists think the RBNZ will keep the Official Cash Rate (OCR) unchanged for most of 2026, and some believe rate increases might happen later in 2026 or early in 2027.
On the other hand, US President Donald Trump said he would take action if Iranian officials attacked civilians, while Tehran warned the US and Israel not to get involved. The growing conflict between the US and Iran might make the safe-haven currency, like the US dollar, stronger compared to the New Zealand dollar.
Fed's Powell said the threat of indictment is just an excuse to push for higher rates.
The RBNZ's tight stance might support the Kiwi.
The NZD/USD pair moves up to about 0.5745 in the early European session on Monday. The US Dollar is weaker against the Kiwi because there are new worries about the US Federal Reserve's independence. Traders are watching for the US Consumer Price Index (CPI) inflation data, which will come out later on Tuesday and could give more direction.
Tensions between the White House and the Federal Reserve got worse over the weekend. Fed Chair Jerome Powell said the administration had threatened to file criminal charges against him because of the renovation of the central bank's main building. Powell said these threats were just an excuse to push the Fed into lowering interest rates. The news caused some pressure on the dollar, making it less attractive, and could help other currency pairs.
Ray Attrill, who leads currency strategy at the National Australia Bank, said, "This open conflict between the Fed and the U.S. government ... is definitely not good for the U.S. dollar."
The Reserve Bank of New Zealand (RBNZ) has a cautious stance on future interest rate decisions, which might help the New Zealand Dollar (NZD). The bank says it's probably done with lowering rates, but it's still open to more cuts if the economy doesn't go as well as expected. Most economists think the RBNZ will keep the Official Cash Rate (OCR) unchanged for most of 2026, and some believe rate increases might happen later in 2026 or early in 2027.
On the other hand, US President Donald Trump said he would take action if Iranian officials attacked civilians, while Tehran warned the US and Israel not to get involved. The growing conflict between the US and Iran might make the safe-haven currency, like the US dollar, stronger compared to the New Zealand dollar.
