Select Language

NZD/USD remains steady near 0.6050 following Food Price Index data

Breaking news

NZD/USD remains steady near 0.6050 following Food Price Index data

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.06.17 11:54
NZD/USD remains steady near 0.6050 following Food Price Index data

update 2025.06.17 11:54

  • NZD/USD holds ground after the release of food inflation data in New Zealand.
  • New Zealand's Food Price Index rose 4.4% YoY in May, from April's 3.7% increase, marking highest level since December 2023.
  • The NZD received support from improved risk sentiment after Iran reportedly asked for an immediate ceasefire.

NZD/USD extends its gains for the second successive session, trading around 0.6060 during the Asian hours on Tuesday. However, the pair moved little after the Food Price Index data was released by Statistics New Zealand.

The annual food inflation in New Zealand climbed to 4.4% in May, from April's 3.7% rise. The inflation has reached its highest level since December 2023, which further pressures household budgets. Meanwhile, the monthly food prices rose to 0.5%, from a 0.8% increase in April. The persistent food inflation could influence the Reserve Bank of New Zealand's (RBNZ) policy outlook.

The risk-sensitive New Zealand Dollar (NZD) gained ground as investors scaled back risk-off positions due to the possibility diminution of the Israel-Iran conflict. The shift in sentiment emerged after Iran reportedly asked many countries, including Oman, Qatar, and Saudi Arabia, to urge US President Donald Trump to use his influence on Israel for an immediate ceasefire, per Reuters.

Traders are closely watching for updates from the United States (US) following the recent posts from President Donald Trump. On Monday, Trump called for the evacuation of Tehran, hours after urging the country's leaders to accept a deal to limit its nuclear program, as Israel hinted that attacks would continue, per Bloomberg.

Trump posted in a social media post, "Iran should have signed the 'deal' I told them to sign." "What a shame, and a waste of human life. Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran."

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.


Date

Created

 : 2025.06.17

Update

Last updated

 : 2025.06.17

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

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

EUR/JPY hovers around 171.50 after pulling back from yearly highs

EUR/JPY continues its deterioration for the second successive session after pulling back from a one-year high of 172.28, reached on Wednesday. The currency cross is trading around 171.40 during the Asian hours on Thursday.
New
update2025.07.10 11:57

Japan's Akazawa: Dollar's status as global reserve currency remains solid

Japan's top trade negotiator, Ryosei Akazawa, said on Thursday that the US Dollar's (USD) status as global reserve currency remains solid. Akazawa added that Japan is unlikely to face US demands to prop up Japanese Yen as the USD is more susceptible to selling.
New
update2025.07.10 11:35

Japanese Yen draws support from reviving safe-haven demand amid trade concerns

The Japanese Yen (JPY) is building on the previous day's goodish recovery from over a two-week low and scaling higher for the second consecutive day against a broadly retreating US Dollar (USD).
New
update2025.07.10 11:35

US Dollar Index weakens below 97.50 on fresh tariff threats

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, retreats from near a two-week high to 97.30 amid tariff threats after US President Donald Trump unveiled a new round of tariff demand letters. 
New
update2025.07.10 11:24

US President Donald Trump sets 50% tariffs on copper, effective August 1 - Reuters

US President Donald Trump said Wednesday that the new 50% tariff on US copper imports, which he had announced the previous day, will take effect on August 1, per Reuters. The decision was made after he received a national security assessment. 
New
update2025.07.10 11:14

Australian Dollar advances due to persistent inflation risks, subdued US Dollar

The Australian Dollar (AUD) continues its winning streak for the third successive session on Thursday. The AUD/USD pair gained ground after the Reserve Bank of Australia (RBA) surprisingly decided to maintain the Official Cash Rate (OCR) at 3.85% earlier this week.
New
update2025.07.10 10:48

PBOC sets USD/CNY reference rate at 7.1510 vs. 7.1541 previous

The People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Thursday at 7.1510 as compared to the previous day's fix of 7.1541 and 7.1757 Reuters estimate.
New
update2025.07.10 10:15

NZD/USD strengthens above 0.6000, eyes on US Initial Jobless Claims release

The NZD/USD pair extends the rally to around 0.6010 during the early Asian session on Thursday. The New Zealand Dollar (NZD) strengthens against the Greenback as the Reserve Bank of New Zealand struck a cautious tone in its latest policy meeting.
New
update2025.07.10 10:09

WTI drifts lower to near $67.00 on rising Crude Stockpile in US, tariff uncertainty

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.15 during the early Asian trading hours on Thursday. The WTI price loses ground amid concerns over weakening demand following a surprise increase in US crude inventories. 
New
update2025.07.10 08:57

USD/CAD posts modest gain above 1.3650 on firmer US Dollar

The USD/CAD pair posts a modest gain around 1.3685 during the early Asian session on Thursday, bolstered by a firmer US Dollar (USD). Traders will closely monitor negotiations between the United States and its trading partners. The US weekly Initial Jobless Claims is due later on Thursday.  
New
update2025.07.10 08:23

Disclaimer:arw

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.

  • Facebook
  • Twitter
  • LINE

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

I agree
share
Share
Cancel