- The NZD/USD advances slightly behind the New Zealand trade balance data on Friday.
- The New Zealand trade balance showed a 510 million dollars surplus in February, reversing the 544 million dollars deficit of the previous month.
- The torque potential can be limited since the US dollar (USD) remains firm in the middle of a growing risk aversion.
- However, the torque potential can be limited since the US dollar (USD) remains firm in the midst of a growing risk aversion.
The NZD/USD pauses its three -day loss streak, quoting around 0.5760 during the European hours of Friday. The New Zealand dollar (NZD) found little support after the data of the New Zealand trade balance, which showed a surplus of 510 million dollars in February, reversing the 544 million dollars deficit of the previous month. The data published on Friday showed that exports of goods increased by 16% to 6,740 million dollars, while imports saw a modest increase of 2.1% to 6,230 million dollars.
Although New Zealand economy has left the recession, underlying weaknesses persist. The markets continue to anticipate a relief of politics, with expectations of around 60 basic points (PB) in rate cuts – team to two or three reductions – for the end of the year.
However, the nzd/USD torque potential may be limited since the US dollar (USD) remains firm in the middle of a growing risk aversion driven by the growing global commercial tensions linked to the tariff policies of the US USA. but recognized the broader economic uncertainty they create.
As for US data, the initial unemployment applications increased to 223K for the week that ended on March 15, slightly below the 224K forecast but exceeding the 221K revised of the previous week. Meanwhile, the manufacturing survey of the Fed of Philadelphia for March fell to 12.5 from February 18.1, marking a second consecutive monthly fall but remaining above the expectation of 8.5.
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.
