- The NZD/USD wins with force about 0.6040 as the demand for risk assets improves despite tensions between Israel and Iran.
- Israel attacked military and nuclear facilities in Iran, with the aim of restricting its ability to build nuclear weapons.
- This week, the Fed is expected to maintain stable interest rates in the range of 4.25%-4.50%.
The NZD/USD pair rises 0.5% to about 0.6040 during the European negotiation hours on Monday. The Kiwi pair is strengthened as the demand for risk assets has increased, while tensions between Israel and Iran remain intact. Theoretically, risk assets have a lower yield, and the demand for safe refuge bets, such as the US dollar (USD), increases amid high geopolitical tensions.
Last week, the Israeli army launched a series of attacks on military bases and nuclear facilities of Iran early on Friday to arrest Tehran in its attempt to build nuclear eyes.
The American dollar index (DXY), which measures the value of the dollar against six main currencies, drops to about 98.00 after reverse the initial profits. Meanwhile, the New Zealand dollar (NZD) exceeds its peers as the feeling of the market has become favorable for risk assets.
New Zealander dollar today
The lower table shows the percentage of change of the New Zealand dollar (NZD) compared to the main coins today. The New Zealand dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.30% | -0.13% | -0.29% | -0.14% | -0.56% | -0.53% | -0.04% | |
| EUR | 0.30% | 0.05% | -0.02% | 0.17% | -0.14% | -0.22% | 0.27% | |
| GBP | 0.13% | -0.05% | -0.04% | 0.11% | -0.18% | -0.27% | 0.21% | |
| JPY | 0.29% | 0.02% | 0.04% | 0.16% | -0.57% | -0.60% | -0.16% | |
| CAD | 0.14% | -0.17% | -0.11% | -0.16% | -0.36% | -0.39% | 0.10% | |
| Aud | 0.56% | 0.14% | 0.18% | 0.57% | 0.36% | -0.08% | 0.41% | |
| NZD | 0.53% | 0.22% | 0.27% | 0.60% | 0.39% | 0.08% | 0.49% | |
| CHF | 0.04% | -0.27% | -0.21% | 0.16% | -0.10% | -0.41% | -0.49% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the New Zealand dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the NZD (base)/USD (quotation).
In the domestic sphere, the US dollar will be influenced by the Federal Reserve Monetary Policy announcement (FED) on Wednesday. According to the CME Fedwatch tool, the Fed is expected to maintain stable interest rates in the range of 4.25%-4.50%.
Investors will closely follow the comments of the president of the FED, Jerome Powell, at the press conference, after the decision on the interest rate, to obtain clues about when the Central Bank will begin to reduce its reference interest rates. The main prominent point of the Fed policy would be the Fed points chart, which shows where the officials who direct the interest rates in the short and long term are directed.
Before the Fed monetary policy announcement, investors will also focus on May retail sales data, which will be published on Tuesday. Retail sales data, a key measure of consumer spending, are expected to have decreased 0.7% in the month.
Economic indicator
Fed interest rates decision
The Federal Reserve (Fed) Delibera on monetary policy and makes a decision on interest rates in eight preprogrammed meetings per year. It has two mandates: maintain inflation in 2% and maintain full employment. Its main tool to achieve this is to establish interest rates, both to those that it lends to banks and to those that banks lend each other. If you decide to raise the fees, the US dollar (USD) tends to strengthen since it attracts more foreign capital tickets. If the rates lower, it tends to weaken the USD since capital is drained towards countries that offer greater returns. If the rates remain unchanged, the attention focuses on the tone of the Federal Open Market Committee (FOMC), and if it is a hard line (expectancy of higher interest rates in the future) or moderate (expectation of lower rates in the future).
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Next publication: MIÉ JUN 18, 2025 18:00
Frequency: Irregular
Dear: 4.5%
Previous: 4.5%
Fountain: Federal Reserve
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
