New Zealand dollar remains steady trading below US$0.60
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Daily Currency Update
The New Zealand dollar is slightly weaker this morning when valued against the Greenback, trading at US$0.5972 at the time of writing. The NZD/USD pair softened to around US$0.5950 during the Asian trading hours on Monday, pressured by the renewed US Dollar (USD) demand. Signs that global trade tensions between the United States and China may be easing provide some support to the Greenback.On Monday, traders assessed China’s press conference about policies and measures. China pledged its full confidence in achieving this year’s growth target of around 5%, vowing to implement timely and multiple support measures, as the country is now in a trade war with the US. At a Politburo meeting chaired by President Xi Jinping last week, officials called for a “timely reduction” in interest rates and reserve requirement ratios to support the economy.
Additional measures to aid struggling businesses, boost consumption among middle- and lower-income groups, and promote further development in technology and artificial intelligence were also emphasised.
Key Movers
The US Dollar Index (DXY) remains under bearish pressure, hovering near 99.33, after slipping 0.25% on the day. While the Relative Strength Index (RSI) at 35.28 remains neutral, the Moving Average Convergence Divergence (MACD) issues a sell signal, confirming the underlying bearish tone.The USD/JPY pair faces heavy selling pressure, sliding to the 142.00 zone during Monday’s North American hours. Investor caution has resurfaced as broader trade optimism erodes, pushing demand toward the safe-haven Japanese yen. Japanese markets remained closed on Monday for Showa Day, yet attention remains on the upcoming BoJ meeting, where policymakers are expected to hold rates at 0.50%.
On the economic calendar front, a busy week is ahead. The data will likely help traders assess if the Federal Reserve (Fed) will deliver an interest-rate cut in its upcoming policy meeting on May 7. This week's main attention will be on Wednesday, with the first reading of the US Gross Domestic Product (GDP) for the first quarter. Next, on Friday, the US Employment report for April, which includes the all-important Nonfarm Payrolls number, is the main event to close off the week.
Expected Ranges
- NZD/USD: 0.5900 - 0.6100 ▼
- NZD/EUR: 0.5100 - 0.5300 ▼
- GBP/NZD: 2.2400 - 2.2600 ▼
- NZD/AUD: 1.0650 - 1.0850 ▲
- NZD/CAD: 0.8150 - 0.8350 ▼