- NZD/USD loses land because westpac consumer survey suggests weakening of consumer confidence to New Zealand.
- Westpac New Zealand showed a decline in its reliability index and in Q1 Z 97.5 in the previous quarter dropped to 89.2.
- The US dollar remains firm because traders accept caution before the Fed’s interest rate decision payable on Wednesday.
NZD/USD remains subdued the next day in a row and is around 0.5810 during the Wednesday Asian session. After the release of the New Zealand Q1 2025 Westpac consumer survey, which indicated the weakening confidence of consumers, the couple is facing downwards.
Westpac New Zealand said its confidence index dropped to 89.2 V Q1 of 97.5 in the previous period, the lowest level of Q2 2024. The decrease reflects increasing tension, persistent pressure on living costs and volatility of the financial market.
However, a few NZD/USD can find support from the market optimism before quarterly GDP data in New Zealand on Thursday. Analysts expect a modest 0.4% reflection in Q4 after two consecutive neighborhoods of contraction.
Meanwhile, the US dollar (USD) remains a solid, supported by the stable revenue of the treasury, as investors are waiting for the decision of the Federal Reserve (feeding) (feed) (feeding) later on the day. Markets are widely expected Fed will hold rates In the middle of permanent inflation and economic uncertainty.
The US dollar index (DXY) is traded nearly 103.30, while the American two -year and ten -year Ministry of Finance is 4.04% and 4.29%. Greenback, however, face pressure from the weak us economic data And they restored President Donald Trump’s tariff threats and increased market uncertainty.
Traders carefully monitor updated Fed economic projections to insight into the future trip of US interest rates. Any Hawkish signals could further strengthen USD against their counterparts.
New Zealand Temporary Questions
The New Zealand dollar (NZD), also known as Kiwi, is a known traded currency among investors. Its value is generally determined by the health of the economy of New Zealand and the policy of the central bank in the country. However, there are some unique peculiarities that can also move NZD. The performance of the Chinese economy tends to move kiwi because China is the largest business partner of New Zealand. Bad news for the Chinese economy is likely to mean less exports in New Zealand into the country, the economy and thus its currency. Another factor moving NZD is milk prices, because the dairy industry is the main export of New Zealand. High milk prices increase export income, contribute positively to the economy and thus to NZD.
The aim of the Reserve Bank of New Zealand (RBNZ) is to achieve and maintain an inflation rate between 1% and 3% in the medium term, focusing on maintaining it close to 2% center. For this purpose, the Bank lays down the appropriate interest rate. If inflation is too high, RBNZ will raise interest rates to cool the economy, but this step will also increase bond yields, which will increase the attraction of investors to investing in the country, thus increasing NZD. On the other hand, lower interest rates tend to weaken NZD. The so -called differential rate or, as is expected to be in New Zealand, compared with the US federal reserve rates, they can also play a key role in moving the NZD/USD pair.
Macroeconomic editions of data in New Zealand are crucial to the state of the economy and can affect the valuation of New Zealand (NZD). A strong economy based on high economic growth, low unemployment and high trust is good for NZD. High economic growth attracts foreign investment and can encourage New Zealand’s reserve bank to raise interest rates if this economic force is associated with increased inflation. Conversely, if economic data is weak, NZD is likely to depreciate.
The New Zealand dollar (NZD) tends to strengthen during the period of risk, or when investors perceive that wider market risks are low and are optimistic about growth. This tends to lead to a more favorable view for commodities and so -called “commodity currencies”, such as Kiwi. On the contrary, NZD tends to weaken at the time of market turbulence or economic uncertainty because investors tend to sell assets with higher risk and flee to more stable safe paradises.
