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NZD/USD remains close to 0.5950 after losses triggered by US-Iran conflict, focus shifts to US ISM PMI data

NZD/USD remains close to 0.5950 after losses triggered by US-Iran conflict, focus shifts to US ISM PMI data

101 finance101 finance2026/03/02 10:30
By:101 finance

NZD/USD Slides Amid Heightened Geopolitical Tensions

The NZD/USD currency pair is experiencing notable declines, falling by approximately 0.75% to hover near 0.5950 in Monday’s European session. This downward movement is largely attributed to intensifying conflict involving the United States and Israel, which has fueled demand for safe-haven assets as concerns over escalating unrest in the Middle East persist.

At the same time, the US Dollar Index (DXY)—a measure of the dollar’s strength against a basket of six major currencies—has advanced by 0.7%, reaching close to 98.40.

Earlier in the day, Iran’s security chief, Ali Larijani, dismissed the possibility of talks with the US, further amplifying the appeal of safe-haven investments due to increased geopolitical risk.

Over the weekend, coordinated airstrikes by the US and Israel targeted Tehran, resulting in the death of Supreme Leader Ayatollah Ali Khamenei. In response, Iran launched a barrage of missiles and drones at Israeli locations and several US military installations throughout the Middle East.

Key Economic Events to Watch

Looking ahead, the release of the US Nonfarm Payrolls (NFP) report for February on Friday is expected to be a significant catalyst for the US Dollar. Additionally, investors are keeping an eye on the US ISM Manufacturing PMI for February, scheduled for publication at 15:00 GMT on Monday. Forecasts suggest the Manufacturing PMI will dip to 52.3, down from January’s 52.6.

Developments in New Zealand

In New Zealand, expectations for aggressive monetary tightening by the Reserve Bank of New Zealand (RBNZ) have eased. Governor Anna Breman indicated in the February policy statement that the nation’s economy may continue to expand without sparking significant inflationary pressures.

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