The 4-hour chart for NZD/USD shows that the price is consolidating between the $0.5850 and $0.6020 levels. This consolidation reflects strong bullish price action, and a break above $0.6020 would signal further upside.
The sharp volatility following Trump’s tariff announcement has generated positive momentum in NZD/USD.
US Dollar Gains Support on Fiscal Outlook and Rate Stability
The US Dollar Index (DXY) rebounds to 100.40 on Thursday. The market is waiting for US Q1 GDP, personal consumption expenditures, and jobless claims. These indicators will shape expectations for economic strength and monetary policy. Meanwhile, FOMC minutes show the Fed prefers to hold rates steady amid uncertainty. This supports the USD by reinforcing the central bank’s cautious stance.
Moreover, Trump’s proposed “One Big Beautiful Bill” could increase the deficit by $3.8 billion. The CBO projects a significant widening of the fiscal gap. Senator Ron Johnson raised concerns, warning of a $2.2 trillion annual deficit. Rising deficits often push bond yields higher, which attracts foreign capital and strengthens the USD.
