NZD/USD strengthens above 0.5750 on growing risk of US government shutdown

أسواق الإمارات اليومSeptember 29, 2025

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NZD/USD gains momentum around 0.5770 in Monday’s Asian session.
A possible government shutdown could undermine the US Dollar.
Analysts noted the RBNZ is taking a more dovish stance than expected.

The NZD/USD pair holds positive ground near 0.5770 during the early Asian trading hours on Monday. The US Dollar (USD) edges lower against the New Zealand Dollar (NZD) amid the growing risk of a US government shutdown. Traders brace for the Fedspeak later on Monday.

US President Donald Trump will meet with the top four congressional leaders at the White House on Monday as the deadline for a possible government shutdown looms. Without funding legislation, parts of the government would close on Wednesday, the first day of the U.S. government’s 2026 fiscal year. This, in turn, could drag the Greenback lower and act as a tailwind for the pair.

Additionally, the US Federal Reserve (Fed) rate cut hopes remain intact after the US Personal Consumption Expenditures (PCE) Price Index report, which might contribute to the USD’s downside. The US PCE Price Index rose 2.7% YoY in August, compared to 2.6% in the previous reading, in line with analyst forecasts. The core PCE, which excludes food and energy prices, arrived at 2.9% YoY during the same period, matching expectations.

On the other hand, the prospect of further Official Cash Rate (OCR) cuts by the Reserve Bank of New Zealand (RBNZ) this year could weigh on the Kiwi against the USD. Anna Breman has been appointed the new RBNZ Governor and will begin her role in early December. Acting Governor Christian Hawkesby will preside over the upcoming October and November meetings, where additional rate cuts are likely, as the recent New Zealand Gross Domestic Product (GDP) came in weaker than expected.

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