- NZD/USD softens to around 0.5695 in the Thursday Asian session.
- The Chinese central bank maintained constant reference rates.
- Trump’s tariff threats can raise an American dollar and create a wind for NZD/USD.
The NZD/USD pair trads a negative hint around 0.5695 in Asian commercial hours on Thursday. Traders are preparing for the original claims of the unemployed in the US, the leading CB economic index and Philly Fed Manufacturing Index reports, which are to appear later on Thursday.
On Thursday, the Bank of People’s China (PBOC) maintained the annual loan rate (LPR) in the amount of 3.1%, and 5-year LPR at 3.6%. The Chinese authorities prioritize financial stability over mitigating the interest rate to strengthen the economy.
Kiwi remains under the pressure of sales on Gołębice, the position of the Bank of New Zealand Reserve (RBNZ). RBNZ reduced the comparative factor with 50 base points (BPS) to 3.75% at the February meeting on Wednesday. The Central Bank signaled a further reduction in the cost of the loan in connection with the moderation of inflation, because decision -makers tried to raise the fighting economy.
Meanwhile, Donald Trump’s fresh tariff threats can raise secure flows, bringing benefits in the near future. Since the inauguration last month, Trump has imposed a 10% tariff on the entire import of China, in addition to existing tariffs up to 25%. At the end of Tuesday, Trump said that he would probably impose a tariff of about 25% on foreign cars, while chips and semiconductor drugs are dealing with higher duties.
