New Zealand dollar continues to trade below 60 US cents
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Daily Currency Update
The New Zealand dollar is slightly weaker this morning when valued against the Greenback currently trading at 0.5929 at time of writing. NZD/USD is retracing its recent gains from the previous session on Tuesday. The US Dollar (USD) is finding support as optimism grows over easing US-China trade tensions. Markets were jolted when US Treasury Secretary Scott Bessent said it was up to China to “de-escalate” the trade war, a reversal from last week when President Donald Trump suggested the US would scale back its tariffs first. Domestically, the NZD is weighed down by weak labor market data, which has strengthened expectations that the Reserve Bank of New Zealand (RBNZ) will cut interest rates by 25 basis points next month, with markets pricing in a 90% probability. Additionally, Finance Minister Nicola Willis announced that baseline spending in the 2025 budget will be reduced due to deteriorating economic conditions.Key Movers
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rebounds to near 99.30 after a steep correction on Monday. Market sentiment is favourable as investors expect the trade war will be limited between the world’s two largest powerhouses. S&P 500 futures have posted some gains in the European session, demonstrating an increase in risk appetite of investors. On the data front the number of job openings on the last business day of March stood at 7.19 million, the US Bureau of Labor Statistics (BLS) reported in the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday. This reading followed 7.48 million openings (revised from 7.56 million) reported in February and came in below the market expectation of 7.5 million. Looking ahead and all eyes are on Friday's nonfarm payrolls, which surprised on the upside last month with a gain of 228 thousand, blowing past the forecast of 140 thousand. The markets are braced for a weak nonfarm payrolls release of 135 thousand.Expected Ranges
- NZD/USD: 0.5800 - 0.6000 ▼
- NZD/EUR: 0.5100 - 0.5300 ▼
- GBP/NZD: 2.2450 - 2.2650 ▲
- NZD/AUD: 1.0650 - 1.0950 ▼
- NZD/CAD: 0.8100 - 0.8300 ▲