- The NZD/USD wins traction about 0.5905 in the Asian session on Wednesday.
- China’s economy grew by 5.4% year -on -year in the first quarter, stronger than expected.
- The Vacilant Commercial Policies of the United States and the features of Fed fees weigh on the US dollar.
The NZD/USD pair remains on positive terrain around 0.5905 during Wednesday’s Asian negotiation hours. The New Zealand dollar is strengthened against the US dollar (USD) after the encouraging economic data of China. The operators will change their attention to the Raist sales of the US of March and the speech of the president of the Federal Reserve (FED), Jerome Powell, Wednesday.
The data published by the National Office of Statistics of China on Wednesday showed that the rate of the Gross Domestic Product (GDP) of China rose 5.4% year -on -year in the first quarter (Q1), compared to an annual rate of 5.4% recorded in the last quarter of last year. This figure was stronger than the market forecast of 5.1%. In quarterly terms, the Chinese Gross Domestic Product rate (GDP) increased 1.2% in the first quarter compared to 1.6% of the anterior quarter, below the early printing of 1.4%.
Meanwhile, the country’s retail sales jumped 5.9% year -on -year in March compared to the previous 4.0% and 4.2% expected. Industrial production reached 7.7% year -on -year in March from 5.9% in February, above 5.6% market consensus. The New Zealand dollar (NZD) attracts some buyers in an immediate reaction to the strongest Chinese economic data than expected.
Trump increased additional tariffs to 84%on April 9 and since then increased them to 125%, carrying the total tariffs on Chinese goods exported to the US to 145%. On Monday, Trump said he was considering a modification to tariffs of 25% taxes on imports of cars and pieces of foreign cars in Mexico, Canada and other nations.
The uncertainty about Trump’s tariff policy and the increase in bets that an economic deceleration driven by tariffs in the US could force the Federal Reserve (Fed) to cut the interest rates more aggressively in 2025 could drag the US dollar downward and create a tail wind for the NZD/USD torque in the short term. The markets are now valuing almost 85 basic points (BPS) of relaxation of monetary policy by the end of the year, with most waiting for the Fed to keep the rates next month, according to the Fedwatch tool of the CME.
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.
