- NZD/USD weakened to around 0.5895 during the European session on Monday.
- China’s Caixin manufacturing PMI growth beat expectations in November.
- The US ISM manufacturing PMI will be released later on Monday.
The New Zealand dollar weakened against the U.S. dollar during Asian trading on Monday, trading around 0.5895. Expectations for another Reserve Bank of New Zealand (RBNZ) rate cut in February 2025 and Trump’s threats of new bullishness continue to weigh on both. Later on Monday, the U.S. ISM Manufacturing Purchasing Managers’ Index (PMI) for November is due.
The Reserve Bank of New Zealand Governor Adrian Orr hinted at a press conference last week that another rate cut could be made in February 2025, given the impact of New Zealand’s economic growth. This has caused the New Zealand dollar to lose value against the US dollar. Trump has also promised to impose tariffs of 25% on all goods from Mexico and Canada, and 10% on goods from China. These tariffs could affect international trade and affect the New Zealand economy, as China is New Zealand’s largest trading partner.
Data from Caixin Intelligence and Standard & Poor’s on Monday showed China’s manufacturing PMI rose to 51.5 in November, beating expectations of 50.5 from 50.3 in October. However, the upbeat economic data failed to support the NZD/USD pair amid cautious sentiment.
Investors are eyeing fresh catalysts from the U.S. ISM manufacturing PMI data on Monday, which is expected to rise to 47.5 in November from 46.5 in October. Later this week, the Fed spokesman is likely to offer some guidance on the outlook for U.S. interest rate policy and the U.S. employment report for November.
