Created
: 2025.08.08
- 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 surges above 0.5950 due to dovish Fed policy outlook
World FX news
Breaking news
NZD/USD surges above 0.5950 due to dovish Fed policy outlook
New
2025.08.08 15:34
2025.08.08 15:34
2025.08.08 15:34
- NZD/USD remained stronger following strong Chinese trade surplus and rising RBNZ inflation expectations.
- Traders remain cautious as a 15% tariff on New Zealand exports to the US came into effect on Thursday.
- CME FedWatch tool indicates a nearly a 93% probability of a 25 basis point Fed rate cut in September.
NZD/USD extends its three-day winning streak, trading around 0.5960 during the Asian hours on Friday. The pair continues to gain ground as the New Zealand Dollar (NZD) advanced following the encouraging Chinese Trade Surplus and the rising Reserve Bank of New Zealand's (RBNZ) Inflation Expectations data. China's, New Zealand's largest trading partner, consumer and producer price data will likely be eyed on Saturday.
China's Trade Surplus increased to CNY705.10 billion in July, from the previous figure of CNY585.96 billion. Additionally, RBNZ's Inflation Expectations declined on a 12-month and a two-year time frame for the third quarter of 2025.
However, the upside of the NZD/USD pair could be limited as the New Zealand Dollar may face challenges amid prevailing concerns over the impact of newly imposed tariffs on the domestic economy. A 15% tariff on New Zealand exports to the US took effect on Thursday, raising risks for the country's export-driven economy.
The NZD/USD pair also draws support from easing risk sentiment, with rising expectations for Fed rate cut next month, with another possible move in December. Traders are pricing in nearly a 93% possibility of a 25 basis point (bps) cut in September, up from 48% a week ago, according to the CME FedWatch tool.
The dovish sentiment surrounding the Fed policy outlook has boosted as the US Initial Jobless Claims showed new applications for unemployment insurance in the United States (US) increased, following the July US Nonfarm Payrolls (NFP) report pointed to a cooling labor market. The jobless claims increased to 226K for the week ending August 2. This figure came in above the market consensus of 221K and was higher than the previous week's 218K.
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
: 2025.08.08
Related articles
USD/CHF approaches 0.8100 with the Swiss Franc on the defensive
5 minutes agoAUD/USD extends gains, approaching 0.6540 highs on risk appetite
2025.08.08 17:17Forex Today: US Dollar stabilizes, Gold tests $3,400
2025.08.08 17:11Pound Sterling holds gains as traders pare BoE interest rate cut bets after tight vote
2025.08.08 16:42USD/CAD Price Forecast: Holds 20-day EMA around 1.3730 ahead of Canadian employment data
2025.08.08 16:33US Dollar Index price forecast: Rebounds near 98.00, eyes nine-day EMA
2025.08.08 15:56
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
Silver price today: Silver rises, according to FXStreet data
Silver prices (XAG/USD) rose on Friday, according to FXStreet data.
New
2025.08.08 18:30USD/CHF approaches 0.8100 with the Swiss Franc on the defensive
The Swiss Franc is underperforming on Friday, hammered by a moderate risk appetite and the threat from hefty US tariffs on Swiss imports, which is boosting a mild USD/CHF recovery from Thursday's lows at 0.8045 to levels nearing 0.8100.The Swiss President Karin Keller-Sutter left Washington on Thurs
New
2025.08.08 18:28AUD/USD extends gains, approaching 0.6540 highs on risk appetite
The Aussie Dollar remains outperforming its peers on Friday, fuelled by a moderate risk appetite.
New
2025.08.08 17:17Forex Today: US Dollar stabilizes, Gold tests $3,400
Here is what you need to know on Friday, August 8:
New
2025.08.08 17:11Silver Price Forecast: XAG/USD stalls below $38.50 as the USD sell-off stops
Silver (XAG/USD) is trading higher on Friday and on track for a 3.5% weekly rally from $31.20 lows, but the precious metal is struggling to find acceptance in the upper range of the $38.00s, which might lead to some bearish correction.The Fundamental background remains favourable, with recent US dat
New
2025.08.08 16:43Pound Sterling holds gains as traders pare BoE interest rate cut bets after tight vote
The Pound Sterling (GBP) holds onto Thursday's gains during the European trading session on Friday as traders pare bets supporting interest rate cuts by the Bank of England (BoE) after the monetary policy announcement on Thursday, in which officials decided to cut rates but after a very tight vote.
New
2025.08.08 16:42Dow Jones futures rise on dovish Fed outlook, chip stocks outperform
Dow Jones futures advance during early European hours, ahead of the market opening in the United States (US) on Friday, trading above 44,100, up by 0.14%. Meanwhile, S&P 500 futures rise by 0.16% to 6,370, and Nasdaq 100 futures appreciate 0.18% to trade around 23,300.
New
2025.08.08 16:37USD/CAD Price Forecast: Holds 20-day EMA around 1.3730 ahead of Canadian employment data
The USD/CAD pair trades in a tight range around 1.3730 during the European trading session on Friday. The Loonie pair consolidates as investors await the Canadian labor market data for July, which will be published at 12:30 GMT.
New
2025.08.08 16:33US Dollar Index price forecast: Rebounds near 98.00, eyes nine-day EMA
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after two days of losses and trading around 98.20 during the early European hours on Friday.
New
2025.08.08 15:56WTI tumbles to below $63.00 as tariff concerns mount
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.90 during the early European trading hours on Friday. The WTI trades in negative territory for the seventh consecutive day and heads for the biggest weekly loss since June.
New
2025.08.08 15:54Disclaimer:
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
