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March 5, 2025

NZDUSD Under Pressure as Trade Risks Mount

The New Zealand dollar (NZDUSD) fell to around 0.56587 on Wednesday as escalating global trade tensions weighed on the export-driven currency.

Trader sentiment turned cautious after the U.S. imposed 25% tariffs on imports from Mexico and Canada, while doubling tariffs on Chinese goods to 20%. This prompted immediate retaliatory measures, heightening fears of a broader trade conflict.

Technical Analysis

Picture: NZDUSD hovers near 0.56587, facing resistance at 0.56682 as bullish momentum strengthen–learn more on the VT Markets app.

NZDUSD slipped 0.10%, closing at 0.56587 after opening at 0.56644. The price reached a high of 0.56682 and a low of 0.56368, showing minor fluctuations.

The moving averages (MA 5,10,30) indicate an upward bias, with short-term MAs trending above the longer-term average. The MACD (12,26,9) histogram has turned positive, suggesting bullish momentum building up.

Key support is at 0.55957, while immediate resistance is at 0.56682. A breakout above resistance could extend gains, while a pullback may test lower support levels.

RBNZ Governor’s Surprise Exit Adds to Volatility

Domestically, uncertainty looms as Reserve Bank of New Zealand Governor Adrian Orr announced his resignation, three years before completing his second term.

Deputy Governor Christian Hawkesby will take over as Acting Governor until March 31. The leadership shift adds another layer of risk, even as inflation remains contained and economic growth is expected to pick up.

Market Outlook

NZDUSD traders should closely monitor upcoming U.S. jobs data, including the ADP employment report and Friday’s non-farm payrolls, as they could shape the Federal Reserve’s rate outlook. Any signs of economic weakness may boost rate-cut bets and provide some relief for NZDUSD.

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