- The NZD/USD falls about 0.5870 while the US dollar is strengthened after a temporary truce between the US and China.
- USA and China have reduced tariffs by 115% for 90 days.
- The moderate expectations of the RBNZ limit the bullish potential of the New Zealand dollar.
The NZD/USD collapses collapse about 0.5870 during negotiation hours in North America on Monday. The Kiwi torque falls dramatically as the demand of the US dollar (USD) has increased after Washington’s comments indicating that the commercial war between the United States (USA) and China has been avoided.
The US dollar index (DXY), which measures the value of the dollar against six main currencies, is triggered above 101.50, the highest level seen in a month. The feeling of the market becomes optimistic since it is expected that the resolution of the commercial war between the US and China improve the global economic perspectives. The S&P 500 has registered substantial profits when opening, demonstrating the strong appetite for the risk of investors.
In a joint statement, the US and China have announced a 90 -day pause in tariffs and reduced them by 115%. The truce between the two greatest powers of the world is expected to decrease the high expectations of consumer inflation in the US.
Although the New Zealand dollar (NZD) is down against the US dollar, its perspective is improving since the commercial truce between the US and China will have indirect support for the Kiwi economy. Meanwhile, the growing expectations that the New Zealand Reserve Bank (RBNZ) will cut interest rates even more could limit the nzd’s bullish potential.
The NZD/USD slides about 0.5870 after the rupture of double soil formation in a daily temporal frame after breaking below the last minimum higher than 0.5890. The torque has fallen near the 200 -day exponential (EMA) mobile average, which quotes around 0.5860. The general trend will become bassist if the asset falls below the 200 -day EMA.
The 14 -day relative force index (RSI) falls about 50.00. A new bearish impulse would appear if the RSI falls below 40.00.
More falls towards the maximum of April 4, 0.5803 and the minimum of April 11, 0.5730 would appear if the PAR extends its fall below the 200 days of 0.5860.
In an alternative scenario, an upward movement towards the minimum of October 9, 0.6052 and the round level of 0.6100 seems likely if the torque breaks above the psychological level of 0.6000.
GRAPH DIARY NZD/USD
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
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.
