New Zealand dollar continues to trade above US$0.57
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Daily Currency Update
The New Zealand dollar is slightly stronger this morning when valued against the Greenback currently trading at 0.5730 at time of writing. The NZD/USD pair edges higher to around 0.5700 during the early Asian session on Friday. The growing concerns about US trade policies weigh on the US dollar (USD) and create a tailwind for the pair. Nonetheless, the upside for the pair might be capped amid concerns over persistent deflationary pressures in China. China's Consumer Price Index (CPI) in February missed expectations and fell at the sharpest pace in 13 months, while producer price deflation persisted. This report could undermine the China-proxy Kiwi, as China is the largest trading partner of New Zealand. Looking ahead this week on the data front and today we will see the release of the BusinessNZ Services Index. On Wednesday we will see the release of the Westpac Consumer Sentiment and Current Account. On Thursday all eyes will be on the release of the Gross Domestic Product (GDP) the broadest measure of economic activity and the primary gauge of the economy's health. Finally, on Friday we will see the release of New Zeeland's Trade balance figures and Credit card spending for the month.Key Movers
The US dollar Index (DXY), which tracks the performance of the US dollar (USD) against six major currencies, dips lower again on Friday after a few headlines on tariffs and the US spending bill. Data released by the US Bureau of Labor Statistics on Thursday showed that the US Producer Price Index (PPI) rose 3.2% YoY in February, compared to the rise of 3.7% seen in January. This figure came in softer than the estimation of 3.3%. The core PPI rose 3.4% YoY in February versus 3.8% prior. On a monthly basis, the PPI was unchanged in February, while the core PPI declined by 0.1% during the same reported period. Meanwhile, on Friday US Consumer Sentiment took a dip in early March, according to the preliminary reading of the University of Michigan’s Consumer Sentiment Index. The gauge slipped from 64.7 in February to 57.9, missing the market’s forecast. The Dow Jones Industrial Average (DJIA) fought back at the brink on Friday, clawing back roughly 520 points following a string of bad losses that saw the Dow Jones crumble 3,373 points, or -7.66% peak-to-trough, over a two-week period. Gold prices retreat after hitting a record high, surpassing $3,000, as traders remain uncertain about US President Donald Trump's trade policies. This and the weakness of the US dollar drove the precious metal to reach an all-time high of $3,004 a troy ounce before retreating to $2,982, losing 0.21% in the day.Expected Ranges
- NZD/USD: 0.5650 - 0.5850 ▲
- NZD/EUR: 0.5150 - 0.5350 ▲
- GBP/NZD: 2.2300 - 2.2500 ▼
- NZD/AUD: 1.0850 - 1.1150 ▲
- NZD/CAD: 0.8150 - 0.8350 ▲