As shown on the NZD/USD chart today, the exchange rate is around 0.58250—the highest level for the Kiwi against the US dollar since December 2024.

NZD strength is supported by optimism about China's economy, a key trading partner for New Zealand. The Hang Seng Index (Hong Kong 50 on FXOpen) is near three-year highs, driven by:

→ Optimism surrounding AI development in China, including models from DeepSeek and Alibaba.
→ Government stimulus measures boosting the Chinese economy.

Meanwhile, traders are assessing the USD's outlook in light of the Trump administration's trade tariff policies.

Technical Analysis of NZD/USD

The recent rally accelerated after bulls broke through the downward trendline (shown in orange). However, bears may expect a correction due to three key factors:

→ The price is near the 0.58000 level, which previously acted as support (as indicated by arrows). It may now serve as resistance, limiting further gains.

→ The RSI indicator is in overbought territory, unsurprising given the rally's pace over the past week.

→ The price is near the upper boundary of the ascending channel (in place since early 2025), which could also act as resistance to further upside.

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