- The New Zealand dollar can be seen before the meeting between the US and China in London.
- The hopes of a commercial agreement are supporting the risk -related currencies on Monday.
- The US dollar is retreating its profits after non -agricultural payrolls.
The New Zealand dollar, risk -sensitive, is overcoming all its peers on Monday, driven by the hope that the conversations between the US and China may result in an agreement that contributes some clarity to the global commercial scenario. The NZD7USD has risen almost 0.7%, approaching the maximum of the year to date at 0.6080.
Representatives of US and China will meet in London later today, with the aim of relieving recent tensions and finding common land to normalize their commercial relations. A positive Tweet of the US President Trump during the weekend has increased the hopes of a fruitful result, which is feeding the demand for the proxies of China, NZD and Aud.
The US dollar is giving up the gains after the payrolls
The dollar, on the other hand, has yielded most of the land earned on Friday, since the enthusiasm for the report of non -agricultural payrolls of the US of the most expected has vanished.
Friday’s data revealed that the US economy created 139,000 new jobs in May, exceeding 130,000 expectations. Apart from that, unemployment remained unchanged in 4.2%, with salary inflation by increasing at a constant rate of 3.9%annual compared to the expectations of a 3.7%deceleration.
These numbers have relieved concerns about an immediate recession in the US, triggered by a series of negative data earlier, and supported the hard line position of the Federal Reserve. The US dollar shot in general after data.
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.
