- NZD/USD turns less for the third day in a row on Friday amid a modest force for the US dollar.
- The Federal Reserve is expected discounts at a rate of 25 basis points and geopolitical risk supports greenery.
- Optimism of motivation in China can help reduce losses in the anti -valleys – kiwi.
NZD/USD husband is struggling to take advantage of the bounce overnight from the 0.5725-0.5720 region and attracts new sellers during the Asian session on Friday. Immediate prices are currently trading with moderate negative bias around the middle of 0.5700, a decrease on the third consecutive day amid a modest rise in the US dollar (USD).
The Federal Reserve (Fed) previously maintained its expectations for the basic two -point price discounts by the end of this year. In addition, Federal Reserve Chairman Jerome Powell said that progress in achieving the goal of inflation may witness delay in the wake of the tariff by other countries in the United States. This, in turn, is seen as the back wind of Greenback, which looks forward to construction on this week at the lowest multi -month level and works as a reversal base for NZD/USD husband.
Regardless of this, the ongoing geopolitical risks caused by fresh conflicts in the Middle East, Russia’s and prolonged warfare provides additional support to the safe Buck. However, the increasing acceptance that the Federal Reserve will resume the price cutting course sooner than expected, amid concerns about the American economic slowdown by the customs tariff, which may prevent the dollar’s bulls from putting aggressive bets. This, in turn, should help reduce any other negative aspect of NZD/USD.
This, in addition to the latest optimism about the recently announced Chinese stimulus measures, should support anti -friendly currencies, including the New Zealand dollar (NZD). In the absence of any relevant economic issues from the United States from the United States, the basic background makes it wisdom waiting for strong sale before making sure that the bullish trend of the husband NZD/USD has run out since the beginning of this month of steam and positioning for more losses.
Common questions about the New Zealand dollar
The New Zealand dollar (NZD), also known as Kiwi, is a well -known trading currency among investors. Its value is widely determined by the health of the New Zealand economy and the country’s central bank policy. However, there are some unique characteristics that can make NZD move. The performance of the Chinese economy tends to move kiwi because China is the largest commercial partner in New Zealand. The bad news of the Chinese economy is likely to mean exports less than New Zealand to the country, and thus strike the economy. Another factor moves NZD is dairy prices because the dairy industry is the main export of New Zealand. High dairy prices enhance export income, and contribute positively to the economy and thus to NZD.
The Reserve Bank in New Zealand (RBNZ) aims to achieve and maintain the rate of inflation between 1 % and 3 % in the medium term, focusing on keeping it near the mid -2 % point. To this end, the bank determines an appropriate level of interest rates. When inflation is very high, RBNZ will increase interest rates to cool the economy, but this step will make bond returns higher, which increases investor calls to invest in the country and thus enhance NZD. On the contrary, low interest rates tend to weaken NZD. A comparison of the so -called virtuous rate, or how to compare rates in New Zealand can compare it to the one set by the American Federal Reserve, a major role in transferring the NZD/USD pair.
New Zealand’s macroeconomic data versions are the key to assessing the state of the economy and can affect the evaluation of the New Zealand dollar (NZD). The strong economy, based on high economic growth, is a decrease in unemployment and high confidence is good for NZD. Higher economic growth attracts foreign investment and may encourage the New Zealand Reserve to increase interest rates, if this economic power corresponds to high inflation. On the contrary, if economic data is weak, NZD is likely to decrease.
The New Zealand dollar (NZD) tends to strengthen during risk periods, or when investors see the wider market risk that is low and optimistic about growth. This tends to lead to a more convenient look of goods and so -called “commodity currencies” like Kiwi. On the contrary, NZD tends to be weak in times of turmoil in the market or economic uncertainty where investors tend to sell high -risk assets and flee to the most resigned safe havens.
