- The NZD/USD is strengthened after the publication of China’s key economic data.
- China’s first quarter GDP grew at an annual rate of 5.4%, exceeding 5.1%market.
- The US dollar fights while the growing commercial tensions between the US and China erodes the confidence of investors in US assets.
The NZD/USD continues its winning streak for the sixth consecutive day, quoting around 0.5910 during the European hours on Wednesday. The torque can be seen as the New Zealand dollar (NZD) gains ground after the publication of China’s key economic data.
China’s Gross Domestic Product (GDP) grew at an annual rate of 5.4% in the first quarter of 2025, matching the rhythm seen in the fourth quarter of 2024 and exceeding market expectations of 5.1%. In quarterly terms, GDP increased 1.2% in the first quarter, after a 1.6% increase in the previous quarter, being below the predicted gain of 1.4%.
Meanwhile, China’s retail sales shot 5.9% year -on -year, exceeding 4.2% expectations and increasing from 4% in February. Industrial production also exceeded expectations, increasing 7.7% compared to the 5.6% and 5.9% prognosis.
The NZD/USD is appreciated as the US dollar (USD) faces winds against due to the erosion of investors’ confidence in US assets amid the growing commercial tensions between the US and China. The Wall Street Journal, citing informed sources, suggested that the Trump administration seeks to take advantage of tariff negotiations to encourage US business partners to reduce their commitments with China.
At the last minute of Tuesday, Bloomberg reported that US president Donald Trump initiated investigation into possible critical mineral tariffs, marking another movement in the intensification of the commercial war that continues to affect key global economic sectors.
The US retail sales data will be published later in the day, offering possible perspectives on how uncertainties related to tariffs are impacting consumer spending. In addition, the president of the Fed, Jerome Powell, has scheduled to pronounce a speech during the late American session. Investors are likely to direct their attention to the IPC data of the first quarter, which will be published on Thursday, while looking for information on the path of the monetary policy of the New Zealand Reserve Bank (RBNZ).
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.
