New Zealand dollar continues to trade above US$0.57
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Daily Currency Update
The New Zealand dollar is slightly weaker this morning when valued against the Greenback currently trading at 0.5702 at time of writing. New Zealand dollar (NZD) is expected to continue to trade in a range, likely between 0.5700 and 0.5750. In the longer run, NZD is likely to edge lower toward the major support zone of 0.5650/0.5670. Traders remain nervous ahead of Trump’s reciprocal tariffs announcement on April 2. Trump said that tariffs will likely be more “lenient than reciprocal,” as next week's tariff deadline looms for a number of levies to go into effect. However, the uncertainty surrounding his trade policy might drag the New Zealand dollar (NZD) against the US dollar (USD). Furthermore, the positive developments surrounding China’s stimulus measures could boost the NZD, as China is a major trading partner of New Zealand. China’s Vice Premier Ding stated that the official will implement more proactive macroeconomic policies this year while fostering the private sector and encouraging foreign investment.Key Movers
The US dollar Index (DXY), which measures the value of the US dollar (USD) against a basket of currencies, is currently flat near 104.30 on Friday following the release of the Federal Reserve’s (Fed) preferred inflation metric — the Personal Consumption Expenditures (PCE) Price Index. The core PCE Price Index, which excludes volatile food and energy prices, increased 2.8% on a yearly basis in February, above analysts' forecast and January's increase of 2.7%. On a monthly basis, the PCE Price Index and the core PCE Price Index rose 0.3% and 0.4%, respectively. PCE inflation data is usually seen as a big market mover because it is taken into account by Fed officials when deciding on the next policy move. Gold price rallied sharply on Friday, hitting a new record high of $3,086 amid uncertainty over US trade policy, alongside an uptick in the Federal Reserve's (Fed) preferred inflation gauge. After this, traders seem confident that the Fed will cut rates twice in 2025. The XAU/USD trades at 3079, up 0.79%.Expected Ranges
- NZD/USD: 0.5600 - 0.5800 ▼
- NZD/EUR: 0.5150 - 0.5350 ▼
- GBP/NZD: 2.2450 - 2.2650 ▲
- NZD/AUD: 1.0850 - 1.1050 ▲
- NZD/CAD: 0.8050 - 0.8250 ▼