New Zealand dollar consolidates 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 0.5736 at time of writing. The pair is gaining as the New Zealand dollar (NZD) strengthens, possibly driven by the comments from China’s Vice Premier Ding Xuexiang, who stated that China will implement more proactive macroeconomic policies this year. Given the close trade ties between China and New Zealand, any economic shifts in China can significantly impact New Zealand’s markets. The fears of a global trade war ahead of US plans to unveil next week a swath of reciprocal tariffs and the rising expectation of the Reserve Bank of New Zealand (RBNZ) rate cut, weigh on the Kiwi. Economists expect the RBNZ to deliver further cuts to the official cash rate at each of the next meetings despite GDP figures last week surprising to the upside.Key Movers
The US Dollar Index (DXY), which measures the value of the US dollar (USD) against a basket of currencies, trades marginally lower on Thursday near the 104.40 area after giving back early-session gains. On the data front, yesterday US Bureau of Economic Analysis (BEA) reported on Thursday that the United States' Gross Domestic Product (GDP) expanded at an annual rate of 2.4% in the fourth quarter. This reading came in above the market expectation and the previous estimate of 2.3%. Some of the world’s biggest car makers are already copping a huge hit, after Donald Trump announced he would impose tariffs on cars imported into the United States. President Donald Trump says he is placing 25 per cent tariffs on all automotive imports to the United States. He said it would foster domestic manufacturing but could also put a financial squeeze on automakers that depend on global supply chains. The White House expects the tariffs, starting in April, will raise US$100 billion ($159 billion) in revenue annually. Gold price uptrend continued on Thursday with the yellow metal hitting a new record high of $3,059 amid uncertainty over trade policies enacted by US President Donald Trump, which escalated the trade war by imposing tariffs on automobiles. The XAU/USD trades at $3,051, up more than 1%.Expected Ranges
- NZD/USD: 0.5600 - 0.5800 ▲
- NZD/EUR: 0.5200 - 0.5400 ▲
- GBP/NZD: 2.2450 - 2.2650 ▲
- NZD/AUD: 1.0900 - 1.1100 ▼
- NZD/CAD: 0.8100 - 0.8300 ▼