• Thu. May 30th, 2024

NZD/USD inches higher to near 0.6000 after Chinese Trade data

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  • NZD/USD gains ground after Chinese import shows rise in April.
  • RBNZ indicated a delay in any potential rate cut until 2025.
  • The higher US Treasury yields are contributing support for the US Dollar.

NZD/USD has extended its gains for the second consecutive session, trading around 0.6010 during the Asian session on Thursday. The New Zealand Dollar (NZD) gains ground after the release of the Chinese data on Thursday, given the close trade relationship between New Zealand and China.

Chinese Imports (YoY) surged by 8.4% in April, surpassing forecasts of 5.4%. Additionally, Exports grew by 1.5%, higher than the anticipated 1.0% gain projected by analysts. These latest figures brought a positive surprise amidst concerns of potential additional tariffs on Chinese goods by the US. However, Trade Balance USD increased to $72.35 billion from March’s reading of $58.55 billion, slightly below the expected $76.7 billion.

In New Zealand, the Reserve Bank of New Zealand (RBNZ) indicated a delay in any potential move toward monetary easing until 2025. The RBNZ cited higher-than-anticipated inflation pressures in the first quarter as a reason for this stance. Such a decision could provide support for the New Zealand Dollar (NZD).

On the US Dollar’s (USD) front, the expectations of the Federal Reserve (Fed) to keep higher interest rates for an extended period, pushing the US Treasury yields higher. This supports the US Dollar (USD), limiting the advance of the NZD/USD pair.

Additionally, hawkish remarks from Federal Reserve officials have strengthened the Greenback. According to a Reuters report, Federal Reserve Bank of Boston President Susan Collins emphasized on Wednesday the importance of a period of moderation in the US economy to achieve the central bank’s 2% inflation target.

Moreover, Minneapolis Fed President Neel Kashkari stated on Tuesday that the prevailing expectation is for rates to stay unchanged for a considerable period. Although the likelihood of rate hikes is low, it is not completely ruled out.

NZD/USD

OVERVIEW
Today last price 0.6008
Today Daily Change 0.0004
Today Daily Change % 0.07
Today daily open 0.6004
TRENDS
Daily SMA20 0.5946
Daily SMA50 0.6014
Daily SMA100 0.6095
Daily SMA200 0.6039
LEVELS
Previous Daily High 0.6015
Previous Daily Low 0.598
Previous Weekly High 0.6046
Previous Weekly Low 0.5875
Previous Monthly High 0.6079
Previous Monthly Low 0.5851
Daily Fibonacci 38.2% 0.6002
Daily Fibonacci 61.8% 0.5993
Daily Pivot Point S1 0.5984
Daily Pivot Point S2 0.5965
Daily Pivot Point S3 0.5949
Daily Pivot Point R1 0.6019
Daily Pivot Point R2 0.6035
Daily Pivot Point R3 0.6054

 

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