Created
: 2025.03.04
- 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 softens to near 0.5600 on Trump tariff threat
Breaking news
NZD/USD softens to near 0.5600 on Trump tariff threat
New
2025.03.04 10:33
2025.03.04 10:33
2025.03.04 10:33
- NZD/USD edges lower to near 0.5600 in Tuesday's early Asian session.
- China is preparing countermeasures against fresh US import tariffs set to take effect on Tuesday.
- US ISM Manufacturing PMI came in weaker than the expectation, falling to 50.3 in February vs. 50.9 prior.
The NZD/USD pair remains on the defensive around 0.5610 during the early Asian session on Tuesday. The New Zealand Dollar (NZD) weakens against the US Dollar (USD) amid concerns about an escalating trade war between the United States (US) and China, the world's top two economies.
China's state-backed Global Times reported early Tuesday that China's Commerce Ministry vowed to take "necessary countermeasures" to safeguard China's legitimate rights and interests. The ministry reiterated its firm opposition to the US move to impose another 10% tariff on Chinese imports starting on Tuesday. The escalating trade tensions exert some selling pressure on the China-proxy Kiwi as China is a major trading partner to New Zealand.
On the USD's front, soft US economic data for the manufacturing sectors released Monday could undermine the Greenback and cap the downside for the pair. The US ISM Manufacturing Purchasing Managers' Index (PMI) declined to 50.3 in February versus 50.9 prior. This figure came in below the market consensus of 50.5.
Later on Tuesday, traders will take more cues from the Fedspeak. The Federal Reserve's (Fed) Thomas Barkin and John William are set to speak. The attention will shift to Australia's Gross Domestic Product (GDP) for the fourth quarter (Q4), which will be released on Wednesday.
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
: 2025.03.04
Related articles
ECB Review: Meaningfully less restrictive - Danske Bank
22 minutes agoEUR/USD Price Analysis: Bulls push above the 200-day SMA as rally extends
32 minutes agoCanada: Trade surplus explodes as exporters rush to beat tariffs - National Bank of Canada
39 minutes agoGBP/USD rally stalls near 1.2900 as trade war fears weigh on mood
2025.03.07 00:22EUR/JPY finds temporary support as ECB cuts Deposit Facility rate by 25 bps to 2.5%
2025.03.06 22:41US: Initial Jobless Claims dropped to 221K last week
2025.03.06 22:38
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
ECB Review: Meaningfully less restrictive - Danske Bank
Today the ECB decided to cut the policy rate by 25bp, so the deposit rate now yields 2.50%.
New
2025.03.07 01:04EUR/USD Price Analysis: Bulls push above the 200-day SMA as rally extends
EUR/USD extended its rally on Thursday, climbing past the 200-day Simple Moving Average (SMA) after the European session, signaling strong bullish momentum.
New
2025.03.07 00:54Canada: Trade surplus explodes as exporters rush to beat tariffs - National Bank of Canada
While the magnitude of the move was surprising, there is no doubt about the cause of the explosion in the goods trade surplus in January, NBC's Jocelyn Paquet reports.
New
2025.03.07 00:47GBP/USD rally stalls near 1.2900 as trade war fears weigh on mood
The rally in the Pound Sterling stalled after sustaining three straight days of gains.
New
2025.03.07 00:22Silver Price Forecast: XAG/USD corrects to near $32.40 as Trump reprieves tariffs on automobiles
Silver Price (XAG/USD) corrects from the weekly high of $32.70 and drops to near $32.40 in North American trading hours on Thursday.
New
2025.03.06 23:28EUR/JPY finds temporary support as ECB cuts Deposit Facility rate by 25 bps to 2.5%
The EUR/JPY pair finds temporary support after sliding more than 0.75% intraday to near 159.20 in Thursday's North American session.
New
2025.03.06 22:41US: Initial Jobless Claims dropped to 221K last week
US citizens filing new applications for unemployment insurance decreased to 221K for the week ending March 1, as reported by the US Department of Labor (DOL) on Thursday.
New
2025.03.06 22:38GBP tags along with general FX trend - Scotiabank
Pound Sterling (GBP) briefly nudged above 1.29 for the first time since November.
New
2025.03.06 22:11CAD edges marginally lower - Scotiabank
The Canadian Dollar (CAD) is marginally weaker. Canada got a further, temporary concession from the US border tariff regime yesterday, with the White House announcing a one-month reprieve for the auto sector, Scotiabank's Chief FX Strategist Shaun Osborne notes, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.03.06 22:10USD prone to weakness as investors ponder 'US exceptionalism' - Scotiabank
The USD is mixed to weaker overall on the session amid a broader slump in market sentiment.
New
2025.03.06 22:08Disclaimer:
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
