- The NZD/USD earns up to about 0.5955 while the US dollar takes a pause after more than two weeks earnings.
- Fed Waller reiterates the need to reduce interest rates at the monetary policy meeting at the end of this month.
- Investors expect the IPC data of the second quarter of New Zealand, which will be published on Monday.
The NZD/USD pair rises 0.4% to about 0.5955 during Friday’s Asian trading session. The Kiwi pair wins while the US dollar (USD) struggles to extend its rally more than two weeks amid the uncertainty about commercial conversations between the United States (USA) and the European Union (EU).
The president of the USA, Donald Trump, expressed confidence on Wednesday that there is a possibility of a commercial agreement with the EU. Meanwhile, The EU Chief of Commerce, Maros Sefcovichas been directed to Washington for a new round of commercial conversations. Last weekend, Trump imposed 30% tariffs on import block imports.
In the domestic sphere, the governor of the Federal Reserve (FED), Christopher Waller, has reiterated his opinion that the Central Bank should cut interest rates in the July monetary policy meeting. “The Fed should cut interest rates at 25 basic points (PBS) at the July meeting, since the growing risks for economics and employment favor a relaxation policy,” Waller said Thursday at a meeting at the University of New York.
Contrary to Waller’s comments, the CME Fedwatch tool shows that the Fed is sure of maintaining stable interest rates in the range of 4.25% -4.50% at the monetary policy meeting at the end of this month.
In New Zealand (NZ), investors expect the data of the Consumer Price Index (CPI) of the second quarter, which will be published on Monday. The IPC report is expected to show that inflationary pressures grew at a moderate rhythm of 0.6%, compared to an increase of 0.9% observed in the first quarter.
The NZD/USD attracts offers near the 200 -day exponential mobile average (EMA), which is around 0.5910. However, the general trend is still bassist, since the EMAS of 20 and 50 days have a descending slope.
The 14 -day relative force (RSI) index slides about 40.00. A new bearish impulse would be triggered if the RSI falls below that level.
Looking ahead, a downward movement below the minimum of June 23, 0.5883 will expose it to a minimum of May 12, 0.5846, followed by the round level support of 0.5800.
In an alternative scenario, the Kiwi torque would rise to the maximum of June 19, 0.6040 and the minimum of September 11, 0.6100 if it manages to return above the psychological level of 0.6000.
NZD/USD DIARY GRAPH
Economic indicator
Consumer Price Index (QOQ)
This report, published by Statistics New Zealandit is a measure of the movement of inflation that is made from the comparison between retail prices in a basket of consumption representative of goods and services in certain periods of time. The purchasing power of the New Zealand dollar deteriorates by inflation. The CPI is an inflationary pressure indicator and can generate changes in purchase trends. A high reading is perceived as positive for the dollar, while a fact below expected is negative and bassist for the currency.
Read more.
Next publication:
Dom Jul 20, 2025 22:45
Frequency:
Quarterly
Dear:
0.6%
Previous:
0.9%
Fountain:
STATS NZ
Since the inflation target of the New Zealand Reserve Bank (RBNZ) is around the midpoint of 2%, the quarterly publication of the Consumer Price Index (CPI) of Statistics New Zealand is of great importance. The trend of consumer prices tends to influence RBNZ’s interest decision, which in turn strongly impacts the assessment of the NZD. The acceleration of inflation could lead to a faster hardening of the types by the New Zealand and vice versa reserve bank. The real figures that exceed the forecasts make the NZD bullish.
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.
