Created
: 2025.02.17
- 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 rises to near 0.5750 following postponement of Trump's reciprocal tariffs
World FX news
Breaking news
NZD/USD rises to near 0.5750 following postponement of Trump's reciprocal tariffs
New
2025.02.17 16:12
2025.02.17 16:12
2025.02.17 16:12
- NZD/USD appreciates as market sentiment improves following the postponement of Trump's reciprocal tariffs.
- Weaker US Retail Sales data has intensified speculation that the Fed may lower interest rates only later in the year.
- The RBNZ is widely anticipated to lower its interest rates by 50 basis points to 3.75% on Wednesday.
NZD/USD extends its winning streak for the third successive day, trading around 0.5740 during the early European hours on Monday. Liquidity during the North American session may remain thin as all major US financial markets will be closed on Monday for the federal holiday, Presidents' Day.
This upside of the NZD/USD pair is attributed to improved market sentiment, supported by US President Donald Trump's decision to delay the implementation of reciprocal tariffs. Additionally, the US Dollar (USD) weakens as a disappointing US retail sales report has reignited speculation that the Federal Reserve (Fed) may cut interest rates later this year, despite ongoing inflation concerns.
Data from the US Census Bureau on Friday showed that US Retail Sales fell by 0.9% in January, following a revised 0.7% increase in December (previously reported as 0.4%). This decline was sharper than the market's expectation of a 0.1% drop.
The US Dollar Index (DXY), which tracks the US Dollar's performance against six major currencies, remains under pressure for the third consecutive session due to weaker US Treasury yields. As of writing, the DXY hovers around 106.70, while yields on 2-year and 10-year US Treasury bonds stand at 4.26% and 4.47%, respectively.
The Reserve Bank of New Zealand (RBNZ) is scheduled to meet on Wednesday and is expected to lower interest rates by 50 basis points to 3.75%. The central bank is also likely to signal a more gradual pace of further reductions, aiming for a rate of 3.0% or 3.25% by the end of the year. Meanwhile, the Business NZ Performance of Services Index (PSI) increased to 50.4 in January, up from a revised 48.1 in December, marking a return to a slight expansion in the services sector after ten months of contraction.
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
: 2025.02.17
Related articles
GBP/USD climbs as US Dollar weakens due to falling yields
2025.02.26 00:06USD/JPY turns upside down as US Dollar slumps
2025.02.25 23:46ECB's Schnabel: Subdued growth should not be taken as evidence that policy is restrictive
2025.02.25 22:52GBP/USD modestly firmer - Scotiabank
2025.02.25 22:16EUR steady in upper 1.04s - Scotiabank
2025.02.25 22:12CAD steadies after Trump comments on tariffs - Scotiabank
2025.02.25 22:10
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
GBP/USD climbs as US Dollar weakens due to falling yields
The Pound Sterling advanced early in the North American session, bounced off a two-day low of 1.2605, as the Greenback weakened due to falling US Treasury yields.
New
2025.02.26 00:06USD/JPY turns upside down as US Dollar slumps
The USD/JPY pair gives up its intraday gains and turns negative in Tuesday's North American after failing to hold above the psychological figure of 150.00 earlier in the day.
New
2025.02.25 23:46ECB's Schnabel: Subdued growth should not be taken as evidence that policy is restrictive
European Central Bank board member Isabel Schnabel argued on Tuesday that the fact that growth remains subdued cannot and should not be taken as evidence that policy is restrictive, as reported by Reuters.
New
2025.02.25 22:52GBP/USD modestly firmer - Scotiabank
Pound Sterling (GBP) is trading modestly higher, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.25 22:16EUR steady in upper 1.04s - Scotiabank
The EUR is flat on the session, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.25 22:12CAD steadies after Trump comments on tariffs - Scotiabank
With a week to go before the 1-month reprieve for President Trump's border tariff threat expires (March 4th), short-term vols are ticking up again.
New
2025.02.25 22:10USD mixed amid renewed tariff focus - Scotiabank
The US Dollar (USD) is trading mixed against the major currencies in a session where risk appetite appears to be faltering, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.25 22:08US Dollar stuck despite the latest market rout
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, trades almost flat around 106.70 at the time of writing on Tuesday while other asset classes are facing big moves.
New
2025.02.25 21:24AUD/USD declines to near 0.6330 despite US Dollar trades subduedly
The AUD/USD pair falls to near 0.6330 in late European trading hours on Tuesday.
New
2025.02.25 21:03USD/CAD Price Forecast: Holds gains around 1.4250
The USD/CAD clings to gains near 1.4260 in European trading hours on Tuesday.
New
2025.02.25 20:24Disclaimer:
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
