• NZD/USD gains ground to near 0.5790 in Thursday’s Asian session.
• New Zealand’s Q1 annual GDP beat the estimates. 
• Fed held interest rates steady and signaled growing support for rate hikes this year.

The NZD/USD pair gains traction to around 0.5790 during the Asian trading hours on Thursday. The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) amid upbeat annual New Zealand Gross Domestic Product (GDP) data and improved risk sentiment. 

Data released by Statistics New Zealand on Thursday showed that the country’s GDP expanded by 0.8% QoQ in the first quarter (Q1) of 2026. This figure followed a 0.5% expansion (revised from 0.2%) in the fourth quarter of 2025 and came in weaker than the expectation of a rise of 0.9%.

On an annual basis, the New Zealand economy grew by 1.5% in Q1 of 2026, compared to a rise of 1.5% (revised from 1.3%) in Q4 of 2025, while beating the estimation of a 1.1% growth.

US President Donald Trump and Iran’s President Masoud Pezeshkian have electronically signed a memorandum of understanding to end the US and Israel’s war on Iran, per Reuters. Both sides said the deal is in effect. Iran and the US are expected to formally sign the MOU to end the war on Friday in Geneva.

The US Federal Reserve (Fed) on Wednesday decided to leave the policy rate in 3.50%-3.75% range at its June policy meeting. The federal funds rate has held there since the US central bank lowered rates by three-quarters of a percentage point in the latter part of 2025. Fed officials signaled the chance of higher rates as they assess the impacts of the Iran war on inflation.

“Persistently high prices are a burden for the American people, but the recent past need not be prologue,” said Kevin Warsh in his debut press conference as chairman. Officials are unambiguous and unanimous. This committee will deliver price stability.”

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