- The NZD/USD remains stable while the operators adopt caution before the publication of the US non -agricultural payrolls on Friday.
- The dollar extends its recovery in the midst of the rebound in the yields of the US Treasury Bonds.
- The NZD, risk -sensitive, fought while risk aversion grew in the midst of global economic and commercial uncertainties.
The NZD/USD remains stable after registering losses in the previous session, trading around 0.5680 during the European hours of Friday. The torque remains silent while the feeling becomes cautious before a key employment report in the US The Management Policy of the Federal Reserve (FED).
The NZD/USD torque could face pressure since the US dollar (USD) extends its recovery, supported by the rebound in the yields of the US Treasury bonds. The US dollar index (DXY) has risen towards 107.70, While the yields of the 2 and 10 years of treasure are located at 4.22% and 4.44%, respectively, at the time of writing.
In the Data Front, the initial unemployment subsidy requests in the US increased to 219,000 for the week that ended on January 31, according to the US Department of Labor (DOL) on Thursday. This figure exceeds the initial estimates of 213,000 and was greater than the revised count of the previous week of 208,000 (since 207,000).
The New Zealand dollar (NZD), risk -sensitive, fought in greater risk aversion due to global economic and commercial uncertainties. However, commercial negotiations between the United States (USA) and China could temper this feeling. The president of the USA, Donald Trump, and the Chinese president, Xi Jinping, are ready to discuss possible tariff reductions.
The New Zealand dollar could face winds against since it is widely expected that the New Zealand Reserve Bank (RBNZ) cuts interest rates in February. The markets are currently valuing the possibility of a 50 basic points to 3.75% on February 19, marking the third consecutive reduction of great magnitude.
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.
