In the early European session on Monday, NZD/USD dropped to about 0.5755.
The US dollar, a safe-haven currency, has increased since the US raided Venezuela over the weekend and captured President Nicolas Maduro.
The hawkish attitude of RBNZ may limit the pair's decline.
During Monday's early European session, the NZD/USD pair draws some sellers to about 0.5755. With growing geopolitical tensions supporting the worldwide flight to safety, the US dollar (USD) gains ground on the New Zealand dollar (NZD). Later on Monday, the US ISM Manufacturing Purchasing Managers Index (PMI) data will be highlighted. On Friday, the focus will turn to the US jobs report for December.
On Saturday, the United States (US) launched a massive military attack against Venezuela. Venezuelan President Nicolas Maduro and his spouse have been apprehended and transported out of the country, according to US President Donald Trump. According to the Guardian, Trump stated early on Monday that if Venezuela's interim president, Delcy Rodríguez, did not comply with their demands, Washington may launch a second military assault. A headwind for the pair could be the growing tensions in the Venezuela crisis, which could strengthen safe-haven currencies like the US dollar.
However, given worries about the independence of the Federal Reserve (Fed), the US dollar's potential for growth may be constrained. As Jerome Powell's term expires in May, traders await Trump's choice for the new Fed Chair. Powell's successor will be "someone who believes in lower interest rates, by a lot," according to Trump, who claimed he will reveal his choice this month.
The Reserve Bank of New Zealand's (RBNZ) hawkish assessment of the future course of policy could strengthen the NZD on the Kiwi front. According to RBNZ Governor Ann Breman, if the economy develops as anticipated, the policy rate is probably going to stay at its current level for a long time. The Official Cash Rate (OCR) is expected to stay at 2.25% for a while, possibly until mid-2027, before progressively rising, according to economists.
The US dollar, a safe-haven currency, has increased since the US raided Venezuela over the weekend and captured President Nicolas Maduro.
The hawkish attitude of RBNZ may limit the pair's decline.
During Monday's early European session, the NZD/USD pair draws some sellers to about 0.5755. With growing geopolitical tensions supporting the worldwide flight to safety, the US dollar (USD) gains ground on the New Zealand dollar (NZD). Later on Monday, the US ISM Manufacturing Purchasing Managers Index (PMI) data will be highlighted. On Friday, the focus will turn to the US jobs report for December.
On Saturday, the United States (US) launched a massive military attack against Venezuela. Venezuelan President Nicolas Maduro and his spouse have been apprehended and transported out of the country, according to US President Donald Trump. According to the Guardian, Trump stated early on Monday that if Venezuela's interim president, Delcy Rodríguez, did not comply with their demands, Washington may launch a second military assault. A headwind for the pair could be the growing tensions in the Venezuela crisis, which could strengthen safe-haven currencies like the US dollar.
However, given worries about the independence of the Federal Reserve (Fed), the US dollar's potential for growth may be constrained. As Jerome Powell's term expires in May, traders await Trump's choice for the new Fed Chair. Powell's successor will be "someone who believes in lower interest rates, by a lot," according to Trump, who claimed he will reveal his choice this month.
The Reserve Bank of New Zealand's (RBNZ) hawkish assessment of the future course of policy could strengthen the NZD on the Kiwi front. According to RBNZ Governor Ann Breman, if the economy develops as anticipated, the policy rate is probably going to stay at its current level for a long time. The Official Cash Rate (OCR) is expected to stay at 2.25% for a while, possibly until mid-2027, before progressively rising, according to economists.
