- NZD/USD is still fixed as traders adopt caution before issuing salary statements in the United States on Friday.
- The US dollar extends to his recovery amid the recovery of US Treasury revenues.
- NZD is sensitive to risks with increased risk alienation amid uncertainty in global trade and economic doubts.
NZD/USD is still fixed after registering the losses in the previous session, as it traded about 0.5680 during the European hours on Friday. The husband remains silent because feelings turn into caution before determining the main American jobs. Traders are preparing for US salary data (NFP) on Friday, which is expected to form the Federal Reserve Monetary Policy (Fed).
The NZD/USD pair may face pressure as the US dollar (USD) extends to his recovery, with the support of the recovery of US Treasury revenues. The US dollar index (DXY) has increased by about 107.70, while the US Treasury’s revenues for two years and 10 years are 4.22 % and 4.44 %, respectively, at the time of writing this report.
On the data interface, the unemployed demands for American initial work increased to 219 thousand for the week ended on January 31, and the US Department of Labor (DO) said on Thursday. This publication exceeds the initial estimates of 213K and was higher than the revised flag in the previous week of 208K (from 207K).
The New Zealand dollar (NZD) has struggled with NZD, amid increasing aversion to global trade and economic doubts. However, trade negotiations between the United States (the United States) and China can reduce this feeling. US President Donald Trump and Chinese President Xi Jinping will discuss.
The Kiwi dollar may face the opposite wind as it is widely expected to reduce the Reserve Bank of New Zealand (RBNZ) from interest rates in February. The markets are currently priced by a chance of approximately 92 % to reduce 50 points to 3.75 % on February 19, which represents a third reduction in a row in a row.
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 NZD/USD.
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.
