NZD/USD extends losing streak to near 0.5750 despite stronger economic growth
- NZD/USD faces headwinds despite data confirming that the economy has emerged from recession.
- New Zealand's GDP grew by 0.7% QoQ in Q4, against the expected 0.4% rise.
- The US Dollar Index extends its gains ahead of the weekly Initial Jobless Claims due on Thursday.
NZD/USD continues its decline for the third consecutive day, trading around 0.5760 during European hours on Thursday. The New Zealand Dollar (NZD) weakens despite data confirming that the economy has emerged from recession.
New Zealand's GDP expanded by 0.7% quarter-on-quarter in Q4, surpassing the expected 0.4% rise, following a revised 1.1% contraction in Q3. On an annual basis, GDP contracted by 1.1%, slightly better than the forecasted 1.4% decline.
Despite the economic rebound, the NZD remains under pressure due to ongoing challenges and external risks, particularly escalating trade tensions. Market expectations for policy easing by the Reserve Bank of New Zealand (RBNZ) remain firm, with pricing indicating around 60 basis points in rate cuts—equivalent to two or three reductions—by the end of the year.
Meanwhile, in China, a key trading partner for New Zealand, the People's Bank of China (PBOC) kept its Loan Prime Rates (LPRs) unchanged on Thursday, maintaining the one-year rate at 3.10% and the five-year rate at 3.60%. This decision, following Beijing’s implementation of special measures to boost domestic demand, may have added to downward pressure on the NZD.
Additionally, the NZD/USD pair depreciates as the US Dollar Index (DXY) extends its gains, which tracks the US Dollar against six major currencies, is hovering near 103.60 at the time of writing. Traders will likely observe the weekly Initial Jobless Claims, seconded by the Philly Fed Manufacturing Index and Existing Home Sales due on Thursday.
On Wednesday, the Federal Reserve held the federal funds rate steady at 4.25%–4.5% during its March meeting. Fed Chair Jerome Powell noted, “Labor market conditions are solid, and inflation has moved closer to our 2% longer-run goal, though it remains somewhat elevated.”
New Zealand Dollar PRICE Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.26% | 0.22% | -0.03% | 0.16% | 0.70% | 0.91% | 0.24% | |
| EUR | -0.26% | -0.05% | -0.27% | -0.10% | 0.43% | 0.65% | -0.01% | |
| GBP | -0.22% | 0.05% | -0.23% | -0.07% | 0.48% | 0.71% | 0.04% | |
| JPY | 0.03% | 0.27% | 0.23% | 0.17% | 0.72% | 0.92% | 0.35% | |
| CAD | -0.16% | 0.10% | 0.07% | -0.17% | 0.54% | 0.76% | 0.09% | |
| AUD | -0.70% | -0.43% | -0.48% | -0.72% | -0.54% | 0.23% | -0.44% | |
| NZD | -0.91% | -0.65% | -0.71% | -0.92% | -0.76% | -0.23% | -0.69% | |
| CHF | -0.24% | 0.00% | -0.04% | -0.35% | -0.09% | 0.44% | 0.69% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
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