- The NZD/USD remains silent amid the growing geopolitical tensions in the Middle East.
- China’s retail sales advanced 6.4% year -on -year in May, compared to the increase of 5.0% expected.
- The Business NZ Service Performance Index (PSI) fell to 44.0 in May since April 48.1, marking its lowest level since June 2024.
The NZD/USD maintains profits after the publication of Mixed Economic Data from China, quoting around 0.6020 during the Asian hours of Monday. The National Statistics Office (NBS) reported that China’s retail sales increased by 6.4% year -on -year in May, exceeding 5.0% expected and the increase of 5.1% in April. Meanwhile, industrial production increased 5.8% year -on -year, but below 5.9% forecast and from the previous 6.1%.
In addition, the China National Statistics Office (NBS) pointed out in its Monday press conference that the domestic economy is expected to have generally stable during the first half (H1) of 2025. However, China could face challenges to maintain stable growth from the second quarter due to factors such as the growing uncertainty in commercial policies.
In New Zealand, the Business NZ Service Performance Index (PSI) decreased to 44.0 in May since April 48.1. This has marked its lowest level since June 2024 and was the fourth consecutive month of contraction.
However, the NZD/USD PAIR potential could be limited due to risk aversion, driven by growing tensions in the Middle East. Israel and Iran continue to attack each other despite international calls to diplomacy and de -escalated, according to CNN. Iran launched multiple waves of ballistic missiles to Israel. The Iranian revolutionary guard said that its missiles successfully pointed to Israeli military and industrial centers and fuel facilities.
Iran informed the Mediators Qatar and Oman not to enter negotiations while under attack. A source denied the reports that Tehran had approached Oman and Qatar with a request to involve the United States (USA) in the mediation of a cessation of hostilities with Israel.
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.
