- The NZD/USD falls below 0.6000 as the New Zealand dollar weakens before the decision on Fed’s interest rates.
- The hopes of unfortunate in the commercial war between the US and China and the weak data of the Labor Cost Index of the NZ Q1 weigh on the Kiwi dollar.
- It is widely anticipated that the Fed maintains stable interest rates.
The NZD/USD pair goes back to about 0.5980 during negotiation hours in North America on Wednesday, after having reviewed the maximum of six months of 0.6025 earlier in the day. The Kiwi pair faces pressure as the New Zealand dollar (NZD) weakens after investors “buy the rumor and sell the news” of commercial discussions between the United States (USA) and China.
New Zealander dollar today
The lower table shows the percentage of change of the New Zealand dollar (NZD) compared to the main coins today. New Zealand dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | -0.05% | 0.60% | 0.09% | 0.40% | 0.39% | -0.20% | |
| EUR | -0.02% | -0.08% | 0.60% | 0.06% | 0.38% | 0.36% | -0.22% | |
| GBP | 0.05% | 0.08% | 0.63% | 0.16% | 0.45% | 0.43% | -0.15% | |
| JPY | -0.60% | -0.60% | -0.63% | -0.52% | -0.21% | -0.17% | -0.77% | |
| CAD | -0.09% | -0.06% | -0.16% | 0.52% | 0.32% | 0.30% | -0.29% | |
| Aud | -0.40% | -0.38% | -0.45% | 0.21% | -0.32% | -0.01% | -0.62% | |
| NZD | -0.39% | -0.36% | -0.43% | 0.17% | -0.30% | 0.01% | -0.59% | |
| CHF | 0.20% | 0.22% | 0.15% | 0.77% | 0.29% | 0.62% | 0.59% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the New Zealand dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the NZD (base)/USD (quotation).
On Tuesday, both Washington and Beijing agreed a meeting this week in Switzerland. However, the meeting between the two nations is expected to be an initial movement towards the descales in the commercial war that lasts a month and not a constructive step towards commercial negotiation. “My feeling is that this will be about the de -escalated, not on the great commercial agreement,” said US Treasury Secretary Scott Besent, according to CNBC.
In addition, mixed signals of the New Zealand Q1 data have also weighed over the Kiwi dollar. The data showed earlier on the day that the change of employment grew 0.1%, as expected, after having decreased 0.2%in the last quarter of 2024. The unemployment rate remained stable at 5.1%, while investors expected the unemployment rate to have accelerated to 5.3%. The labor cost index grew at a slower pace than expected both on a monthly and annual basis.
Weak labor costs increase the expectations that the New Zealand Reserve Bank (RBNZ) will reduce interest rates in the policy meeting later this month.
Meanwhile, the US dollar (USD) remains stable before the Federal Reserve Monetary Policy Meeting (FED), which will be announced at 18:00 GMT. According to the CME Fedwatch tool, the Fed is almost sure of maintaining the interest rates of stable loans in the range of 4.25%-4.50%. This would be the third consecutive policy meeting in which the Fed will leave interest rates without changes.
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.
