- NZD/USD remains tepid following the release of China’s trade balance data.
- China’s trade balance expanded to CNY692.8 billion in November, up from CNY679.1 billion the previous month.
- Traders are cautious ahead of the release of US Consumer Price Index (CPI) data on Wednesday.
NZD/USD gives back its recent gains, trading around 0.5830 during Asian hours on Tuesday. The New Zealand Dollar (NZD) remains muted following China’s trade balance data for November. However, buyers of the New Zealand dollar welcomed the decision by New Zealand’s main trading partner, China, to implement a more proactive fiscal policy and moderately loose monetary policy next year.
China’s trade balance (CNY) expanded to CNY692.8 billion in November, up from CNY679.1 billion the previous month. Exports grew 1.5% year-on-year in November, compared to an 11.2% increase in October. Meanwhile, imports rose 1.2% year-on-year, recovering from the 3.7% drop recorded earlier.
The New Zealand Dollar remains under pressure as Prime Minister Christopher Luxon reaffirms his commitment to reducing inflation and interest rates to boost the economy. This suggests the possibility of significant rate cuts early next year.
Additionally, the NZD/USD pair depreciates as the US Dollar (USD) extends its winning streak for the third day in a row, as traders adopt caution ahead of the release of US Consumer Price Index (CPI) data. USA on Wednesday. Traders are now pricing in a nearly 85.8% chance of Fed rate cuts by 25 basis points on Dec. 18, according to the CME FedWatch tool.
On Monday, the Federal Reserve Bank of New York highlighted in its consumer survey summary that American consumers are navigating uncertain economic expectations. The survey indicated a notable improvement in consumers’ outlook on their financial situations and the fiscal condition of the federal government, along with a significant change in expectations about debt affordability and credit conditions.
New Zealand Dollar PRICE Today
The table below shows the percentage change of the New Zealand Dollar (NZD) against major currencies today. New Zealand dollar was the weakest currency against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | 0.00% | -0.08% | 0.08% | 0.68% | 0.55% | -0.10% | |
| EUR | 0.06% | 0.07% | -0.05% | 0.13% | 0.74% | 0.66% | -0.04% | |
| GBP | -0.00% | -0.07% | -0.13% | 0.06% | 0.67% | 0.55% | -0.11% | |
| JPY | 0.08% | 0.05% | 0.13% | 0.18% | 0.78% | 0.65% | 0.00% | |
| CAD | -0.08% | -0.13% | -0.06% | -0.18% | 0.61% | 0.49% | -0.16% | |
| AUD | -0.68% | -0.74% | -0.67% | -0.78% | -0.61% | -0.13% | -0.77% | |
| NZD | -0.55% | -0.66% | -0.55% | -0.65% | -0.49% | 0.13% | -0.65% | |
| CHF | 0.10% | 0.04% | 0.11% | -0.00% | 0.16% | 0.77% | 0.65% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will represent the NZD (base)/USD (quote).
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.
