- The NZD/USD faces winds against despite the data confirming that the economy has left the recession.
- New Zealand GDP grew by 0.7% intertrmetral in the fourth quarter, compared to the expected increase of 0.4%.
- The US dollar index extends its profits before the weekly applications of unemployment subsidy that will be published on Thursday.
The NZD/USD continues its decline for the third consecutive day, quoting around 0.5760 during the European hours of Thursday. The New Zealand dollar (NZD) weakens despite the data confirming that the economy has left the recession.
The New Zealand GDP expanded 0.7% intertrimestral in the fourth quarter, exceeding the expected increase of 0.4%, after a revised contraction of 1.1% in the third quarter. In annual terms, GDP contracted 1.1%, slightly better than the predicted fall of 1.4%.
Despite the economic recovery, the NZD remains under pressure due to continuous challenges and external risks, particularly the growing commercial tensions. Market expectations for a policy relief by the New Zealand Reserve Bank (RBNZ) remain firm, with prices indicating around 60 basic points in feat cuts, equivalent to two or three reductions, by the end of the year.
Meanwhile, in China, a key trade partner for New Zealand, the Popular Bank of China (PBOC) maintained its preferential loan rates (LPR) without changes on Thursday, maintaining the rate at one year at 3.10% and the five -year rate at 3.60%. This decision, after the implementation of special measures by Beijing to boost domestic demand, may have added down pressure on the NZD.
In addition, the NZD/USD torque depreciates as the US dollar index (DXY) extends its profits, which tracks the US dollar against six main currencies, and is about 103.60 at the time of writing. Operators are likely to observe the weekly applications for unemployment, followed by the manufacturing index of the Fed of Philadelphia and the sales of existing housing that will be published on Thursday.
On Wednesday, the Federal Reserve maintained the stable federal fund rate at 4.25% –4.5% during its March meeting. The president of the FED, Jerome Powell, said: “The conditions of the labor market are solid, and inflation has approached our 2% long -term goal, although it is still somewhat high.”
New Zealander dollar today
The lower table shows the percentage of change of the New Zealand dollar (NZD) compared to the main coins today. The New Zealand dollar was the weakest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.26% | 0.22% | -0.03% | 0.16% | 0.70% | 0.91% | 0.24% | |
| EUR | -0.26% | -0.05% | -0.27% | -0.10% | 0.43% | 0.65% | -0.01% | |
| GBP | -0.22% | 0.05% | -0.23% | -0.07% | 0.48% | 0.71% | 0.04% | |
| JPY | 0.03% | 0.27% | 0.23% | 0.17% | 0.72% | 0.92% | 0.35% | |
| CAD | -0.16% | 0.10% | 0.07% | -0.17% | 0.54% | 0.76% | 0.09% | |
| Aud | -0.70% | -0.43% | -0.48% | -0.72% | -0.54% | 0.23% | -0.44% | |
| NZD | -0.91% | -0.65% | -0.71% | -0.92% | -0.76% | -0.23% | -0.69% | |
| CHF | -0.24% | 0.00% | -0.04% | -0.35% | -0.09% | 0.44% | 0.69% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the New Zealand dollar of 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 (quotation).
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.
