Created
: 2025.02.04
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
NZD/USD rebounds above 0.5600, all eyes turn to Trump's China tariff
World FX news
Breaking news
NZD/USD rebounds above 0.5600, all eyes turn to Trump's China tariff
New
2025.02.04 09:09
2025.02.04 09:09
2025.02.04 09:09
- NZD/USD gains momentum to around 0.5630 in Tuesday's early Asian session, up 0.62% on the day.
- Trump has confirmed the postponement of his Canada and Mexico tariffs in a post on Truth Social.
- Trump tariffs on China are due to hit at 05.00 GMT on Tuesday.
The NZD/USD pair recovers some lost ground to near 0.5630 during the early Asian session on Tuesday. The US Dollar (USD) weakens after US President Donald Trump pauses tariffs on Mexico and Canada late Monday. However, investors will closely monitor the development surrounding the tariff deal with China, which might trigger the volatility in the markets.
Trump said he will suspend his threat of steep tariffs on Mexico and Canada after both countries' presidents agreed to immediately send 10,000 soldiers to the US border to prevent drug trafficking. While Mexico and Canada have had tariffs postponed for at least 30 days, China stands alone in facing the new Trump levies.
China is due to be hit with across-the-board tariffs of 10% that begin at 05.00 GMT on Tuesday. The threat of a global trade war could fuel safe-haven currency like the Greenback and act as a headwind for NZD/USD. However, the positive development surrounding tariff policies between the US and China could provide some support to the China-proxy New Zealand Dollar (NZD) as China is a major trading partner to New Zealand.
New Zealand Dollar FAQs
The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country's central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand's biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand's main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.
The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors' appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.
Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar's (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate.
The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called 'commodity currencies' such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.
Last updated
: 2025.02.04
Related articles
BoJ's Ueda: Central bank is aiming to achieve 2% inflation, as measured by overall CPI
3 minutes agoAustralian Dollar holds gains as Trump delays tariffs on Canada, Mexico
2025.02.04 10:31Japanese Yen weakens amid fading safe-haven demand after Trump delays tariffs
2025.02.04 10:23White House unveils plan to set up sovereign wealth fund
2025.02.04 09:52NZD/USD rebounds above 0.5600, all eyes turn to Trump's China tariff
2025.02.04 09:07EUR/USD trims losses but still sheds weight
2025.02.04 08:43
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
BoJ's Ueda: Central bank is aiming to achieve 2% inflation, as measured by overall CPI
Bank of Japan (BoJ) Governor Kazuo Ueda told the Japanese parliament on Tuesday that the "BoJ is aiming to achieve 2% inflation, as measured by overall CPI, on a sustainable basis." Additional quotes Trend inflation refers to price moves excluding one-off factors.
New
2025.02.04 11:51Silver Price Forecast: XAG/USD holds gains above $31.50 near two-month highs
Silver price (XAG/USD) continues its upward momentum, reaching near two-month highs and trading around $31.60 per troy ounce during Asian trading hours on Tuesday.
New
2025.02.04 11:40WTI languishes near $72.00 mark, 100-day SMA holds the key for bulls
West Texas Intermediate (WTI) US Crude Oil prices extend the previous day's retracement slide from a one-week top and attract sellers for the second successive day on Tuesday.
New
2025.02.04 11:12Australian Dollar holds gains as Trump delays tariffs on Canada, Mexico
The Australian Dollar (AUD) rebounds on Tuesday, ending its six-day losing streak as the AUD/USD pair rises amid a weakening US Dollar (USD).
New
2025.02.04 10:31Japanese Yen weakens amid fading safe-haven demand after Trump delays tariffs
The Japanese Yen (JPY) drifts lower during the Asian session on Tuesday as US President Donald Trump's decision to delay plans to impose trade tariffs on Canada and Mexico dents demand for traditional safe-haven assets.
New
2025.02.04 10:23White House unveils plan to set up sovereign wealth fund
The White House said in a statement late Monday that US President Donald Trump signed an executive order to begin developing a US government-owned investment fund, per Reuters.
New
2025.02.04 09:52NZD/USD rebounds above 0.5600, all eyes turn to Trump's China tariff
The NZD/USD pair recovers some lost ground to near 0.5630 during the early Asian session on Tuesday.
New
2025.02.04 09:07EUR/USD trims losses but still sheds weight
EUR/USD dropped sharply following fresh tariff threats from US President Donald Trump, impacting the markets.
New
2025.02.04 08:43GBP/USD whipsaws as tariffs come and go
GBP/USD sewered after a batch of fresh tariff threats from US President Donald Trump hit the markets, but plunges across global risk markets clawed back to recover ground after looming US tariffs on Canada and Mexico gave way to 30-day concessions from the Trump administration.
New
2025.02.04 08:29USD/CAD falls to near 1.4400 as Trump delays Canada tariffs 30 Days
The USD/CAD pair tumbles to near 1.4410 during the late American session on Monday.
New
2025.02.04 08:04Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
