• NZD/USD struggles to build on its recovery and trades beneath the 0.6000 psychological level.
• The US Dollar finds renewed support amid mixed Fed signals and ongoing trade tensions.
• The Reserve Bank of New Zealand’s accommodative stance continues to cap upside potential for the Kiwi.

NZD/USD trades around 0.5950 on Tuesday at the time of writing, down 0.14% on the day, after failing to establish a sustained move above the 0.6000 level.

The US Dollar (USD) is gaining ground as investors digest both trade-related developments and the latest remarks from Federal Reserve (Fed) officials. The US Supreme Court’s decision to challenge the use of certain tariff measures initially weighed on the Greenback, but US President Donald Trump’s announcement of a new 15% global levy has revived concerns about international trade. This environment supports cautious demand for the US Dollar, backed by its relative safe-haven appeal.

At the same time, the latest minutes from the Federal Open Market Committee (FOMC) indicate that several members consider additional easing premature without clear evidence that inflation is sustainably returning to target. However, markets still price in several 25-basis-point rate cuts this year, limiting the Dollar’s upside potential and preventing a sharper decline in NZD/USD.

On the New Zealand side, the Reserve Bank of New Zealand (RBNZ) maintains an overall accommodative tone. Although Governor Anna Breman stated that the central bank could act earlier if inflation expectations shift or if economic growth strengthens significantly, the RBNZ recently kept its Official Cash Rate at 2.25% and pushed back the prospect of tightening to later this year. This stance has led markets to scale back near-term rate hike expectations, structurally weighing on the New Zealand Dollar (NZD).

In this context, global risk sentiment and upcoming US data releases, including confidence indicators and speeches from influential Fed members, remain key for the short-term outlook.