Key Moments
- NZD/USD recovers to 0.5720 after bouncing from four-month lows near 0.5680, though the broader downtrend remains in place.
- Reports of progress toward a peace framework in Iran spur risk sentiment and pressure the safe-haven US Dollar.
- Technical indicators show early signs of a potential NZD/USD correction, with key resistance clustered between 0.5740 and 0.5780.
Kiwi Benefits From Softer Dollar in Thin Holiday Trade
The New Zealand Dollar is advancing against the US Dollar in a relatively subdued session, with many markets closed for Easter Monday. NZD/USD has extended its recovery from four-month lows near 0.5680 earlier in the day, climbing back to around 0.5720. Despite the latest uptick, the pair’s broader bearish structure is still largely unchanged.
The move comes as the US Dollar shows moderate weakness, allowing risk-linked currencies such as the Kiwi to stabilize. The session has been characterized as calm, but the shift in sentiment has been enough to trim earlier losses in NZD/USD.
Geopolitical Developments Support Risk Assets
Risk-sensitive assets are seeing some relief following news that talks aimed at securing a peace agreement in Iran are continuing. According to a Reuters report, Iran and the US have received a framework for a plan that would halt hostilities immediately and could pave the way for reopening the Strait of Hormuz.
This perceived progress has encouraged investors to scale back long positions in the US Dollar, reducing demand for the safe-haven currency and supporting higher-beta FX such as the New Zealand Dollar.
Technical Picture: Downtrend Intact but Momentum Loss Emerging
From a technical standpoint, NZD/USD still exhibits a negative near-term bias, yet recent price action hints that bearish momentum may be fading. The pair appears to be trading within a potential ending wedge formation after losing more than 6% since late January.
On the 4-hour chart, the Relative Strength Index is displaying a bullish divergence as it edges toward the key 50 level. At the same time, the Moving Average Convergence Divergence line is attempting to move above the Signal line, while the histogram has turned positive, rising above the zero line.
For buyers to gain firmer control and validate a corrective bounce, several technical hurdles would need to be cleared. These include a break of the descending trendline resistance currently near 0.5740, followed by Friday’s high at 0.5753. Ideally, bulls would also push through the April 1 peak, located close to 0.5780.
On the downside, immediate support lies at the session low around 0.5680, with additional protection near the lower boundary of the wedge pattern at approximately 0.5660.
(The technical analysis of this story was written with the help of an AI tool.)
US Dollar Performance Against Major Currencies
The table below details the percentage change of the US Dollar against a basket of major currencies for the day. The US Dollar has shown the strongest performance versus the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | — | -0.33% | -0.40% | -0.16% | -0.18% | -0.53% | -0.54% | -0.31% |
| EUR | 0.33% | — | -0.06% | 0.15% | 0.16% | -0.22% | -0.23% | -0.00% |
| GBP | 0.40% | 0.06% | — | 0.21% | 0.18% | -0.16% | -0.18% | 0.07% |
| JPY | 0.16% | -0.15% | -0.21% | — | -0.02% | -0.39% | -0.41% | -0.17% |
| CAD | 0.18% | -0.16% | -0.18% | 0.02% | — | -0.34% | -0.36% | -0.13% |
| AUD | 0.53% | 0.22% | 0.16% | 0.39% | 0.34% | — | -0.03% | 0.22% |
| NZD | 0.54% | 0.23% | 0.18% | 0.41% | 0.36% | 0.03% | — | 0.26% |
| CHF | 0.31% | 0.00% | -0.07% | 0.17% | 0.13% | -0.22% | -0.26% | — |
The heat map reflects percentage moves of major currencies relative to each other. The base currency is taken from the left-hand column, and the quote currency from the top row. For instance, selecting the US Dollar on the left and moving horizontally to the Japanese Yen cell shows the percentage change for USD (base)/JPY (quote).
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