New Zealand rallies on improved risk sentiment
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Daily Currency Update
The New Zealand dollar is slightly weaker this morning when valued against the Greenback currently trading at 0.5901 at time of writing. The pair strengthens as the New Zealand dollar (NZD) gains traction amid improving sentiment and signs of easing US-China trade tensions, given New Zealand’s close trading relations with China. On Friday morning, a spokesperson for China's ministry of commerce announced that Beijing was assessing the possibility of tariff negotiations with the United States. It was news the rest of the world had been waiting to hear as astonishingly high tariffs, up to 245% on some Chinese exports to the US - throttle trade between the world's two biggest economies, raising the spectre of a recession. The statement comes a day after a Weibo account linked to Chinese state media said the US had been seeking to initiate discussions, and a week after Trump claimed discussions were already underway, a suggestion Beijing denied. Looking ahead this week and on Tuesday we will see the release of the monthly ANZ Commodity Prices. On Wednesday the Statistics New Zealand will release the long awaited quarterly Unemployment Rate figures which is expected to rise to 5.3% up from 5.1% the previous quarter.Key Movers
The US dollar Index (DXY), which tracks the performance of the US dollar (USD) against six major currencies, remains capped and falls to 99.50 at the time of writing on Friday after a false break and firm rejection 100-marker. U.S. job growth slowed marginally in April, but the outlook for the labor market is increasingly darkening as President Donald Trump's aggressive tariff policy heightens economic uncertainty. Nonfarm payrolls increased by 177,000 jobs last month after rising by a downwardly revised 185,000 in March, the Labor Department said on Friday. Economists polled by Reuters had forecast 130,000 jobs added last month after a previously reported 228,000 advances in March. Gold (XAU/USD) price edged down over 0.35% on Friday, poised to end the week with losses of over 2.50%. XAU/USD trades at $3,226 after retreating from a daily high of $3,269. Next week traders are eyeing the release of the Federal Reserve’s monetary policy meeting, during which the US central bank is expected to keep rates on hold.Expected Ranges
- NZD/USD: 0.5800 - 0.6000 ▲
- NZD/EUR: 0.5100 - 0.5300 ▲
- GBP/NZD: 2.2050 - 2.2250 ▼
- NZD/AUD: 1.0600 - 1.0800 ▲
- NZD/CAD: 0.8050 - 0.8250 ▼