The New Zealand Dollar Benefits from Strong Data to Remain Among the Strongest G10 Currencies This Year

Author: Samir Al Khoury

Date: February 24, 2026

Overview

The Reserve Bank of New Zealand (RBNZ) maintained its interest rates at 2.25% during its meeting on February 18, 2026, aligning with market expectations. Recent economic indicators from New Zealand suggest a robust economic performance, highlighted by a 3.1% increase in the annual Consumer Price Index (CPI), which surpassed both forecasts and the previous figure of 3.0%. Additionally, employment figures showed a 0.5% increase, exceeding the expected 0.3% and the prior reading of 0.0%. Core retail sales also demonstrated strength, rising by 1.5% on a quarterly basis, significantly above the anticipated 0.4% and the previous 1.2%.

Currency Performance

As of January 29, 2026, the New Zealand dollar (NZD) reached a value of 0.6093 against the US dollar (USD), marking its highest level since July 3, 2025. The NZD has appreciated approximately 4% since the beginning of the year, currently trading near the 0.6000 mark. It ranks third among G10 currencies against the USD, following the Australian dollar and the Norwegian krone, and ahead of the Swiss franc, Swedish krona, Japanese yen, euro, British pound, and Canadian dollar.

US Dollar Weakness

The US dollar is experiencing downward pressure against various foreign currencies, with the US Dollar Index declining about 1% year-to-date. This decline follows a significant Supreme Court ruling that overturned tariffs imposed by former President Donald Trump, which could lead to compensation costs of up to USD 170 billion. In response, Trump announced an increase in global tariffs from 10% to 15% on all countries, invoking the Trade Act of 1974 to circumvent the Supreme Court's decision. This has led to increased uncertainty in trade relations, with around 1,500 companies filing lawsuits to recover dues related to the tariffs.

Technical Analysis

From a technical standpoint, if the NZD/USD pair breaks below the pivot level at 0.5971, it may test support levels at 0.5938, 0.5918, and 0.5885. Conversely, a break above the pivot could target resistance levels at 0.5991, 0.6024, and 0.6044. The Relative Strength Index (RSI) is currently around 51 points, indicating a moderately positive momentum for the New Zealand dollar against the US dollar.

Conclusion

The combination of strong economic data and the current geopolitical landscape positions the New Zealand dollar favorably among G10 currencies. Investors should continue to monitor both domestic economic indicators and international trade developments that could impact currency valuations.