NZD/USD Price Forecast: Kiwi bounces up, nearing 0.5900 as US Dollar loses steam

• NZD/USD pares previous losses and approaches two-week highs right above 0.5900.
• Fresh attacks between the US and Iran hammered risk appetite during the Asian session.
• The technical picture shows a neutral-to-positive immediate bias.

The New Zealand Dollar (NZD) holds minor losses against the US Dollar (USD) on Thursday, as it has retraced most of the daily losses during the London trading session. The pair has returned to levels beyond 0.5890 at the time of writing, approaching two-week highs, at 0.5913, as concerns about the fresh US-Iran hostilities abate.

News of fresh US attacks between the US and Iran crushed risk appetite during Thursday’s Asian session, pushing the US Dollar and Oil prices higher. The Greenback, however, has drifted lower during European trading as investors maintain their hopes of a negotiated end to the conflict.

New Zealand’s budget, released earlier on Thursday, showed a financial deficit of NZD 11.4 billion in the 2026/27 financial year, little changed from previous estimates. Treasury forecasts expect the shortfall to halve in the coming year and return to a surplus in 2028/29.

Technical Analysis: The immediate bias remains moderately positive

NZD/USD trades at 0.5893, holding above previous highs in the 0.5680 area for now. The 4-hour Relative Strength Index sits around 60 after bouncing from the key 50 line, and the Moving Average Convergence Divergence (MACD) shows a slightly positive reading, altogether hinting at a gently improving momentum.

On the topside, initial resistance emerges at a previous support area near 0.5920 (May 13 low) ahead of the May 8 and 11 highs near 0.5970 and May's Peak above 0.5990.

Bears, on the contrary, have been halted at 0.5864 earlier on the day. Any further depreciation below this level would entice sellers to retest the 0.5815-0.5830 area (May 19,20 and 27 lows) ahead of the April 13 low at 0.5800.

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