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The NZD/USD pair extends its upside to near 0.5845 during the early European session on Wednesday. The US Dollar (USD) weakens against the New Zealand Dollar (NZD) on the prospect of a further interest rate cut by the US Federal Reserve (Fed). The weekly US Initial Jobless Claims data will be published later in the day.   Data released by the Bureau of Economic Analysis on Tuesday indicated that strong growth in the world’s largest economy failed to shift sentiment from expectations of Fed interest rate reductions next year. The US economy expanded at a 4.3% annualized pace in the third quarter (Q3). This figure was stronger than the estimates of 3.3% and followed 3.8% growth in Q2.  US President Donald Trump said on Tuesday that he expects his Fed Chair to lower interest rates if the economy is doing well. Trump noted that the next Fed chair will be someone who believes in lower interest rates “by a lot”. He indicated that disagreement with his views would disqualify candidates from consideration for the Fed’s top job. His comments are likely to heighten concerns among investors and policymakers about Fed independence, which could drag the Greenback lower and create a tailwind for the pair.  Nonetheless, the risk-off sentiment amid uncertainty and rising geopolitical tensions could boost the safe-haven currency, such as the USD. The US intensified its attempts to block Venezuela’s crude oil supplies. In an effort to disrupt supply and cut off funding for the Maduro regime, the US intercepted two Venezuelan oil tankers in the Caribbean Sea and threatened to seize additional sanctioned boats approaching or departing Venezuela. New Zealand Dollar FAQs The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the…

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Filed under: News - @ December 24, 2025 8:28 am