New Zealand dollar trades above 58 US cents
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Daily Currency Update
The New Zealand dollar is slightly stronger this morning when valued against the Greenback, currently trading at US$0.5815 at time of writing. Yesterday on the data front, Westpac New Zealand reported that its confidence index dropped to 89.2 in Q1, from 97.5 in the previous period, the lowest level since Q2 2024. The decline reflects mounting trade tensions, persistent cost-of-living pressures, and financial market volatility. While New Zealand's Gross Domestic Product (GDP) grew by 0.7% QoQ in the fourth quarter (Q4) compared with a 1.1% contraction (revised from -1.0%) in the third quarter, Statistics New Zealand showed on Thursday. This reading came in stronger than expectations of 0.4%. The annual fourth-quarter GDP contracted by 1.1%, compared with a decline of 0.3% in Q3, while beating the estimation of a 1.4% fall. Tomorrow, we'll see the release of the New Zealand trade balance figures and credit card spending for the month.Key Movers
On Wednesday, the US Dollar Index (DXY), which tracks the performance of the US dollar (USD) against six major currencies, ticked up to 103.67. Officials at the US Federal Reserve cut their US economic growth forecasts and raised projections for price growth as they kept interest rates on hold. Policymakers at the Fed expect inflation to increase by an average rate of 2.7% this year, up from a previous estimate of 2.5%, according to projections released on Wednesday. They expect US gross domestic product (GDP) – a broad measure of economic health – to rise by 1.7% this year, down from an estimate of 2.1% in December. Officials also revised down their projections for GDP growth in 2026 and 2027, to 1.8%.Expected Ranges
- NZD/USD: 0.5700 - 0.5900 ▲
- NZD/EUR: 0.5200 - 0.5400 ▲
- GBP/NZD: 2.2250 - 2.2450 ▼
- NZD/AUD: 1.0800 - 1.10000 ▼
- NZD/CAD: 0.8200 - 0.8400 ▲