NZDUSD Pulls Back as Momentum Cools Near Resistance

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: February 20, 2026

Key Moments

NZD/USD traded around 0.5950 during Asian hours on Friday after giving back part of its prior-session advance.
The pair is fluctuating between the rising 50-day EMA at 0.5911 and the nine-day EMA at 0.5998, highlighting a shallow corrective phase.
A move below 0.5911 could open the way toward 0.5580, while a break above 0.6000 would refocus attention on 0.6121 and 0.6390.

Technical Picture: Momentum Eases After Recent Gains

NZD/USD has surrendered part of the gains recorded in the previous session and is trading near 0.5950 during Asian trading on Friday. The daily chart indicates a potential bearish reversal signal, with price now sitting below the lower boundary of an ascending channel. At the same time, the 14-day Relative Strength Index (RSI) stands at 48, a neutral reading that points to waning momentum following earlier overbought conditions.

The 50-day Exponential Moving Average (EMA) is edging higher, pointing to an improving bias over the medium term. In contrast, the nine-day EMA has turned lower and is acting as a ceiling on recovery attempts. With spot prices currently holding between these two moving averages, the pair is experiencing a modest pullback within what remains a broader recovery phase.

Key Support and Downside Risk Levels

On the downside, initial support is seen around the 50-day EMA at 0.5911. A decisive break beneath this medium-term reference would likely intensify selling pressure and could steer the pair toward the region surrounding the 10-month low at 0.5580.

Support Level	Technical Reference
0.5911	50-day EMA (primary support)
0.5580	Region around 10-month low

Resistance Levels and Upside Scenarios

On the topside, initial resistance is located at the nine-day EMA at 0.5998, which is closely aligned with the psychologically important 0.6000 handle. A sustained rebound above this confluence zone would favor a move back into the ascending channel and could allow the pair to retest the 16-month high of 0.6121, which was registered in July 2025.

If bullish momentum strengthens beyond 0.6121, the NZD/USD pair would then be positioned to probe the area near the upper boundary of the ascending channel, around 0.6390.

Resistance Level	Technical Reference
0.5998	Nine-day EMA (initial resistance)
0.6000	Psychological resistance
0.6121	16-month high (July 2025)
0.6390	Upper ascending channel boundary

NZD/USD Daily Chart Context

NZD/USD: Daily Chart

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

New Zealand Dollar: Frequently Asked Questions

What key factors drive the New Zealand Dollar?

The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.

How do decisions of the RBNZ impact the New Zealand Dollar?

The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.

How does economic data influence the value of the New Zealand Dollar?

Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar’s (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate.

How does broader risk sentiment impact the New Zealand Dollar?

The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called ‘commodity currencies’ such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.