- The NZD/USD remains close to the maximum of five months of 0.5979, reached on Thursday.
- Investors are still focused on the developments of US commercial policy, especially due to the significant export relationship of New Zealand with China.
- The NZD remains in a limited range of the expectations of greater monetary relief by the New Zealand Bank reserve.
The NZD/USD is being negotiated moderately around 0.5970 during the Asian session on Friday, staying close to the maximum of five months of 0.5979 on Thursday after seven consecutive days of profits. The torque could see a greater increase as the US dollar (USD) weakens in the midst of growing concerns about the economic repercussions of US tariffs. However, negotiation volumes are likely to remain scarce due to Good Friday’s holiday.
Investors are attentive to developments in the US trade policy, especially given the strong export ties of New Zealand with China, their largest commercial partner. On Thursday, US President Donald Trump said that China had made several proposals, adding: “I don’t want to increase tariffs to China. If tariffs to China increase, people won’t buy.” He expressed optimism that a commercial agreement could be achieved in three to four weeks.
In the front of the economic data, the initial unemployment requests in the US fell to 215,000 for the week that ended on April 12, exceeding expectations and lowering a revised 224,000. However, continuous requests increased by 41,000 to 1,885 million for the week ending on April 5.
The New Zealand dollar (NZD) remains in a limited range while the expectations of greater relief by the New Zealand Bank reserve (RBNZ) weigh on the feeling. With inflation even within the objective range of the RBNZ, the markets are valuing a rate cut in May and anticipate that the official cash rate will fall to 2.75% by the end of the year.
New Zealand Faqs dollar
The New Zealand dollar (NZD), also known as Kiwi, is a well -known currency among investors. Its value is largely determined by the health of the neozyous economy and the policy of the country’s central bank. However, there are some peculiarities that can also make the NZD move. The evolution of the Chinese economy tends to move Kiwi because China is the largest commercial partner in New Zealand. The bad news for the Chinese economy is probably translated into less neozyous exports to the country, which will affect the economy and, therefore, its currency. Another factor that moves the NZD is the prices of dairy products, since the dairy industry is the main export of New Zealand. The high prices of dairy products boost export income, contributing positively to the economy and, therefore, to the NZD.
The New Zealand Reserve Bank (RBNZ) aspires to reach and maintain an inflation rate between 1% and 3% in the medium term, with the aim of keeping it near the midpoint of 2%. To do this, the Bank sets an adequate level of interest rates. When inflation is too high, RBNZ rises interest rates to cool the economy, but the measure will also raise bond performance, increasing the attractiveness of investors to invest in the country and thus boosting the NZD. On the contrary, lower interest rates tend to weaken the NZD. The differential type of types, or how they are or is expected to be the types in New Zealand compared to those set by the Federal Reserve of the US, can also play a key role in the NZD/USD movement.
The publication of macroeconomic data in New Zealand is key to evaluating the status of the economy and can influence the valuation of the New Zealand dollar (NZD). A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and can encourage the New Zealand reserve bank to increase interest rates, if this economic strength is accompanied by high inflation. On the contrary, if the economic data is weak, the NZD is likely to depreciate.
The New Zealand dollar (NZD) tends to strengthen during periods of appetite for risk, or when investors perceive that the general market risks are low and are optimistic about growth. This usually translates into more favorable perspectives for raw materials and the so -called “raw material currencies”, such as Kiwi. On the contrary, the NZD tends to weaken in times of turbulence in markets or economic uncertainty, since investors tend to sell the most risky assets and flee the most stable shelters.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
