NZD/USD

The NZD/USD pair rises to around 0.5835, snapping the four-day losing streak during the early European trading hours on Friday. However, the potential upside for the pair might be limited as markets turn cautious ahead of the key US Consumer Price Index (CPI) inflation data later on Friday.

• NZDUSD rose due to favorable interest rate expectations and global risk sentiment. • The U.S. Dollar weakened amid Fed policy uncertainty and profit-taking on positions. • Strong New Zealand export prices and technical indicators supported the currency pair.

The NZD/USD pair gains some positive traction during the Asian session on Friday, reversing a part of the previous day's heavy losses to sub-0.5800 levels, or the lowest since late July.

NZD/USD is clinging to the 0.5800 mark at the start of the Asian session on Friday after dipping to a near two-month low around 0.5797 earlier in the American session.

The Kiwi Dollar fails to clear a confluence of key Simple Moving Averages (SMAs) and dives below 0.5800, printing a near two-month low of 0.5797. At the time of writing, NZD/USD is down 0.65% and poised to test lower levels if it closes below 0.58.

• RBNZ dovish guidance and rate pause expectations pressured the New Zealand dollar. • Strong U.S. employment data and Treasury yields strengthened the U.S. dollar. • Global risk aversion and energy prices further impacted commodity-linked currencies.