• NZD/USD appreciates, extending a ten-day winning streak.
• US labor market figures slightly reassure on US employment conditions.
• The recent US monetary policy decision limits the extent of the upside.

NZD/USD trades higher around 0.6075 on Thursday at the time of writing, posting a gain of 0.40% on the day, marking a tenth consecutive day of gains.. The pair mainly benefits from a firmer New Zealand Dollar (NZD) after the release of stronger-than-expected trade data from New Zealand (NZ), while the US Dollar (USD) remains supported by mixed fundamentals.

The latest figures show that New Zealand recorded a trade surplus of NZ$52 million in December, compared with a deficit of NZ$163 million in the previous month. Exports rise to NZ$7.65 billion, while imports increase to NZ$7.60 billion. This improvement in the trade balance reinforces the view of stronger external demand and supports the New Zealand Dollar against the US Dollar.

On the US side, the Federal Reserve (Fed) kept its benchmark interest rate unchanged at its first meeting of the year, highlighting increased confidence in economic activity and the labor market. Fed Chair Jerome Powell noted that monetary policy is not on a preset path and that future decisions will depend strictly on incoming economic data, a message perceived as relatively hawkish by markets.

Meanwhile, the latest US labor market statistics show that Initial Jobless Claims fell to 209,000 last week, while Continuing Jobless Claims declined to 1.827 million, their lowest level since September 2024. These figures provide underlying support to the US Dollar, limiting the upside potential for NZD/USD.

Finally, comments from US Treasury Secretary Scott Bessent reaffirming Washington’s commitment to a strong-dollar policy offer additional support to the Greenback. Despite this, markets continue to price in two Fed rate cuts this year, allowing NZD/USD to maintain a positive short-term bias.