- The NZD/USD rebound is about the possible alleviation of US-China trade tensions during optimism.
- New -Sea Prime Minister Luxon emphasized that although financial markets have been falling in early April, they have shown a partial recovery since then.
- The US dollar can get back when the Federal Reserve is signaled by a more cautious point of view of monetary policy.
NZD/USD pair trades near Thursday Asian session near 0.5970, recovering after a more than 1% decline after the previous session. Recovery is controlled by optimism associated with the possible escalation of US-China trade voltages.
US Treasury Secretary Scott Bessent will meet with Switzerland's highest economic official in Switzerland on Saturday to revive stopping trade negotiations. Further support for NZD came from China-New's largest trading partners, as Beijing gave stimuli efforts to increase economic growth in the context of trade-related challenges.
New -Sea Prime Minister Christopher Luxon commented on Thursday that although financial markets saw a sharp deterioration in early April, they have been partially recovered, although volatility remains. Luxon emphasized the importance of the global environment, but expressed confidence in the recovery of the new -sea economy.
In the meantime, Christian Hawkesby, the governor of the New -Sea, warned that the country is still vulnerable to global trade disorders resulting from US tariff policy. Hawkesby highlighted weak labor market data and the main problems continuing the global market malfunctions.
The US Dollar Exle (DXY) floats about 99.70 during writing, which has the potential to restore the power of restoring the Federal Reserve (Fed) in the midst of cautious signals. On Wednesday, Fed left interest rates unchanged by 4.25-4.50%, but noted increasing risks due to inflation and unemployment, adding economic uncertainty. According to the CME Fedwatch tool, the markets are still waiting for 25-base points in July.
New -Seamand Dollar Fuck
The New Zealand dollar (NZD), also known as kiwi, is a known currency among investors. Its value is widely determined by the new -Sea Economic Health and the National Central Bank policy. However, there are some unique features that can also move in NZD. The performance of the Chinese economy tends to move Kiivi because China is the new trading partner of the new -sea. The bad news of the Chinese economy is likely to mean less new -sea export country, hit the economy and thus its currency. Another NZD moving factor is dairy prices because the dairy industry is the new export of the sea. High milk prices increase export revenue, helping positively the economy and thus the NZD.
The aim of the New Zealand Reserve Bank (RBNZ) is to achieve and maintain the inflation rate between 1 and 3% in the middle length, focusing on it near the center. For this purpose, the bank sets the level of interest rates. If inflation is too high, RBNZ increases interest rates for economic cooling, but moving will also make the bond higher, increasing the call for investors to invest and thus increase NZDs. On the contrary, lower interest rates tend to weaken NZD. The so-called speed differential or how New Zealand is or expected to be compared to the US Federal Reserve, can also play a key role in moving the NZD/USD pair.
The new macroeconomic data publications of the new -Sea land are key to assessing the state of the economy and may affect the evaluation of the new -Sea Dollar (NZD). A strong economy based on high economic growth, low unemployment and high trust is useful for NZD. High economic growth attracts foreign investment and can encourage the new -Sea Reserve Bank to increase interest rates if this economic strength is accompanied by increased inflation. On the contrary, if economic data is weak, the NZD is likely to be depreciated.
The New Zealand dollar (NZD) tends to strengthen during risk periods or when investors perceive that wider market risks are low and are optimistic about growth. It tends to bring the raw material and the so -called commodity, such as a more favorable prospect of kiwi. On the other hand, NZD tends to weaken during market murmur or economic uncertainty because investors tend to sell higher -risk assets and flee from more stable safe evils.
