The US Dollar is still weak in the market due to cautious optimism and the lack of speeches by Federal Reserve (Fed) policymakers this week, and NZD/USD is taking the bids to revive intraday highs at 0.6490. It’s important to note that the Chinese Lunar New Year holidays limit the Kiwi couple’s preparations while expectations of a competitive election to succeed Jacinda Ardern as Prime Minister (PM) of New Zealand (NZ) seem to favour the pair purchasers.

The Fed officials were, nevertheless, pessimistic before the two-week pre-FOMC (Federal Open Market Committee) blackout period. The final speaker from the US central bank to cross the wires was Governor of the Federal Reserve Christopher Waller.

It should be mentioned that the market’s views of lower rate hikes from the Fed and the proximity to the policy pivot were supported by the depressing US data and improving inflation concerns, which in turn weighed on the US Dollar Index (DXY). However, the dollar index against the six main currencies has fallen over the past two weeks.

In other places, New Zealand Prime Minister Jacinda Ardern has already made her resignation known. As a result, the government is scrambling to find a replacement who can match Ardern’s political persona. The ruling Labour Party nominated former COVID minister Chris Hipkins on Sunday to succeed the charismatic Jacinda Ardern as its new leader and become the next prime minister of the United Kingdom, according to the most recent information from Reuters.

Conclusion

The NZD/USD may continue its recent grinding to the north given the mixed consensus and waning hawkish bias between the Fed and Reserve Bank of New Zealand (RBNZ).