According to the National Australia Bank, the resilience demonstrated by the U.S. economy could limit the downside potential for the U.S. dollar, even if a peace agreement is reached between the United States and Iran. "If a credible and more enduring peace deal is achieved, the U.S. dollar might experience some depreciation, as global conditions would improve, with lower energy prices being a significant positive factor," stated Rodrigo Catril, Senior Foreign Exchange Strategist at National Australia Bank. "However, we believe that after the initial boost in market sentiment, the influence of relative growth dynamics will become more pronounced." "The U.S. has proven to be more resilient than other economies, and if this trend continues, the extent of the dollar's decline anticipated by the market will likely be limited." Catril added that the New Zealand dollar performed strongly on Friday, primarily driven by the Reserve Bank of New Zealand's sustained hawkish stance, better-than-expected survey data released that day, and the unwinding of long positions in the Australian dollar/New Zealand dollar pair.
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