NZD/USD maintains around 0.5650 behind labor market data, China Services PMI

• The NZD/USD remains silent after the publication of national employment figures on Wednesday.
• China’s PMI fell to 51.0 in January from 52.2 in December, below the expected 52.3.
• Operators anticipate non -agricultural payroll (NFP) of Friday, which is expected to show a slight deceleration in employment growth in January.

The NZD/USD remains stable after the publication of the Purchasing Managers Index (PMI) of Caixin Services of China, the near New Zealand commercial partner. The New Zealand dollar (NZD) also avoided reacting to national labor market data. The par quotes around 0.5650 during the Asian hours of Wednesday.

The PMI of China services fell unexpectedly to 51.0 in January from 52.2 in December. The data surprised down, not reaching the estimated figure of 52.3.

The New Zealand unemployment rate rose to 5.1% in the fourth quarter of 2024, from 4.8% of the previous period, in line with market expectations and reaching its highest level since September 2020. The employment rate dropped to 67.4% from 67.7%, while the underutilization rate increased slightly to 12.1% from 11.6% in the previous quarter.

The New Zealand dollar (NZD) could have difficulties due to a feeling of risk aversion after the increase in fears on commercial tensions between the US and China. China retaliates against the new 10% tariff of the US that entered into force on Tuesday. However, Trump declared Monday afternoon that he would probably talk to China. He also warned, “if we cannot reach an agreement with China, the tariffs will be very, very substantial.” However, there are no more updates available.

The China Ministry of Commerce announced that it will impose a 15% tariff on the imports of liquefied coal and natural gas (LNG) of the US, together with an additional 10% tariff on crude oil, agricultural equipment and certain cars . In addition, to “safeguard national security interests,” China is implementing export controls on Tungsten, Telurio, Ruthenium, Molybdenum and related products.

The American dollar index (DXY), which measures the value of the US dollar compared to six main currencies, remains under pressure down for the third consecutive day, quoting around 108.00 at the time of writing this article. Meanwhile, operators are preparing for non -agricultural payroll data (NFP) on Friday, which is expected to mark the direction of the monetary policy of the Federal Reserve (Fed).