New Zealand Dollar climbs to fresh highs amid timid US Dollar

• NZD/USD extended its rally to fresh multi-month highs, buoyed by a weak US Dollar.
• Expectations that the RBNZ could raise rates again as soon as September continue to underpin the Kiwi.
• Traders now look to US PCE and second-quarter GDP on Wednesday and Fed Chair Warsh at Jackson Hole on Friday.

NZD/USD climbed to around 0.5980 Tuesday, near its highest level since June 1 as a softer US Dollar (USD) and firm Reserve Bank of New Zealand (RBNZ) rate-hike expectations powered the Kiwi higher.

The Greenback stayed on the back foot, weighed down by the US Treasury's plan to expand its buyback of longer-dated bonds. US Secretary Scott Bessent is able to tap up to $1 trillion from the Treasury General Account to fund the purchases, according to related reports.

The scheme has pressured US yields, and an earlier safe-haven bid tied to Middle East tensions faded as the US declared the Strait of Hormuz free of mines. Federal Reserve (Fed) Chair Kevin Warsh's address at the Jackson Hole symposium is on Friday.

Short-term technical analysis:

On the 4-hour chart, NZD/USD trades at 0.5977, holding a bullish near-term bias as it consolidates above both the 20-period Simple Moving Average (SMA) near 0.5967 and the 100-period SMA around 0.5900. The pair is pressing just under immediate horizontal resistance at 0.5983, while the Relative Strength Index (RSI) near 62 suggests constructive but not yet overbought momentum, hinting that dips may continue to attract buyers while this short-term structure holds.

On the topside, a clear break above 0.5983 would open the way for further gains, with any move beyond that level facing only distant resistance far above the current market. On the downside, initial support is seen at 0.5971, followed by the 20-period SMA clustered with horizontal support at 0.5967–0.5965, while a deeper pullback could retest 0.5944 before the broader uptrend context anchored by the 100-period SMA at 0.5900 comes into play.

(The technical analysis of this story was written with the help of an AI tool. Know more.)