- The NZD/USD rises to around 0.5900 in the early Asian session on Friday.
- New Zealand retail sales exceed expectations in the first quarter.
- A Global S&P PMI of the USA strongest could limit the rise in the torque.
The NZD/USD pair records modest profits about 0.5900 during the Early Asian Session on Thursday. Optimistic New Zealand retailer data provides some support to the Kiwi against the US dollar (USD). The operators will be attentive to the speeches of Federal Reserve officials (FED) later on Friday, including Alberto Musalem, Jeff Schmid and Lisa Cook.
New Zealand retailer sales were stronger than expected in the first quarter (Q1) this year, since interest -rate cuts triggered an improvement in consumer’s demand and confidence. Retail sales in the country increased 0.8% intertrmetral in the first quarter from the previous reading of 0.9%, according to official data published by Statistics New Zealand on Friday. The New Zealand optimistic economic data support the Kiwi, which acts as Proxy of China, since China is an important commercial partner of New Zealand.
On the other hand, purchasing managers (PMI) indexes of the strongest USA. The governor of the Fed, Christopher Waller, said the markets are monitoring fiscal policy. Waller added that if the tariffs are about 10%, the economy would be in good shape for the second semester, and the Fed could be in a position to cut later in the year. The markets have valued by almost 71% the probability that the Fed maintain its stable interest rates in their next two meetings, 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.
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