- New Zealand dollar violent dollar as retail sales and an boost in the weakness of the American dollar.
- 50% Trump’s tariff threat to EU imports increases the decrease in the prospects of the US economy growth, fueling USD outflows.
- NZD/USD rises in the direction of 0.6000, and the markets are looking in the future to feed Powell’s speech planned for Sunday.
The dollar of New Zealand (NZD) strengthened on Friday to the American dollar (USD), under the influence of positive retail sales data and weaker fiery.
At the time of writing, the NZD/USD is heading in the direction of 0.6000, with the intensity profits of 1.50%, which causes a clear break of the 20-day straight movable medium (SMA), which provides support of 0.5928.
In the Thursday edition of retail sales in the first quarter of New Zealand, growing by 0.8% in the second quarter, exceeded the estimates of analysts by 0.1% growth. The surprise significantly reflected the stable boost in consumer expenditure, ensuring a positive shift of NZD moods. In addition, the New Zealand State Treasury has published updated budgetary forecasts that have shown expectations for the 2025/2026 tax deficit, will boost by 1.3%, below earlier forecasts 1.9%.
In the case of the United States, the proposal of US President Donald Trump regarding a 50% fee for the import of goods from the European Union (EU) caused an boost in USD flows, driving the weakness of the US dollar.
When the federal reserve speakers (FED) maintained the hawk position, increasing the expectations that the FED will keep interest rates in the current range of 4.25% -4.50% at the upcoming meetings of June and July, economic prospects for the US remain uncertain. Although it is expected that the Fed will reduce the rates in September, Fed Chairman Jerome Powell will present his comments on Sunday, providing potential expectations among the current economic background.
New Zealand frequently asked questions
The dollar of New Zealand (NZD), also known as Kiwi, is a well -known commercial currency among investors. Its value depends widely through the health of the New Zealand economy and the policy of the country’s central bank. However, there are some unique special details that can also be made by the NZD movement. The performance of the Chinese economy tends to transfer kiwi because China is the largest trading partner in New Zealand. Bad news for the Chinese economy probably means less New Zealand exports to the country, hitting the economy and thus its currency. Dairy prices are another factor transferring NZD, because the dairy industry is the main export of New Zealand. High dairy prices boost export income, positively contributing to the economy, and thus to NZD.
The Bank of the Bank of New Zealand (RBNZ) aims to achieve and maintain inflation rate from 1% to 3% in the medium period, with an emphasis on maintaining it near 2% of the average point. For this purpose, the bank sets an appropriate level of interest rates. When the inflation is too high, RBNZ will boost interest rates to nippy the economy, but this traffic will boost the boost in bonds, increasing the investor’s appeal to invest in the country, and thus an boost in NZD. On the contrary, lower interest rates tend to weaken the NZD. The so -called rate difference or how the rates in New Zealand are or are expected to be compared with those agreed by the US Federal Reserve, it can also play a key role in moving the NZD/USD pair.
The release of macroeconomic data in New Zealand is crucial for assessing the state of the economy and can affect the valuation of New Zealand dollar (NZD). A powerful economy, based on high economic growth, low unemployment and high trust is good for the NZD. High economic growth attracts foreign investment and can encourage the Bank of New Zealand’s reserves to boost interest rates if this economic force comes along with increased inflation. And vice versa, if the economic data is delicate, the NZD probably absorbs.
The Dollar of New Zealand (NZD) tends to strengthen during risk periods or when investors see that wider market risk is low and hopeful about growth. This leads to more favorable perspectives of goods and so -called “freight currencies”, such as kiwi. And vice versa, NZD tends to weaken market turbulence or economic uncertainty, because investors usually sell assets with a higher risk and run to more stable safe and sound paradise.
