- The NZD/USD remains firm after the publication of food inflation data in New Zealand.
- The New Zealand food price index rose 4.4% year -on -year in May, from an increase of 3.7% in April, marking the highest level since December 2023.
- The NZD received support for the improvement of risk appetite after Iran’s request from a high immediate fire.
The NZD/USD extends its profits per second consecutive session, quoting around 0.6060 during the Asian hours on Tuesday. However, the PAR was moved shortly after the food price index by Statistics New Zealand was published.
Annual food inflation in New Zealand rose to 4.4% in May, from an increase of 3.7% in April. Inflation has reached its highest level since December 2023, which further presses family budgets. Meanwhile, monthly food prices increased 0.5%, from an increase of 0.8% in April. Persistent food inflation could influence the policy perspective of the New Zealand Reserve Bank (RBNZ).
The New Zealand dollar (NZD), risk -sensitive, gained ground as investors reduced risk aversion positions due to the possible decrease in conflict between Israel and Iran. The change in the feeling arose after Iran asked many countries, including Oman, Catar and Saudi Arabia, who urged US President Donald Trump to use his influence on Israel for a high immediate fire, according to Reuters.
The operators are closely observing United States updates (USA) after the recent publications of President Donald Trump. On Monday, Trump requested Tehran’s evacuation, hours after urging the country’s leaders to accept an agreement to limit their nuclear program, while Israel hinted that the attacks would continue, according to Bloomberg.
Trump published in a social network: “Iran should have signed the ‘agreement’ I told them to sign.” “What a shame, and a loss of human lives. Simply, Iran can’t have a nuclear weapon. I have said it again and again! Everyone should evacuate Tehran immediately.”
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.
