NZD/USD remains below 0.5850 following the China Trade Balance data
- NZD/USD remains tepid following the release of China’s Trade Balance data.
- China's Trade Balance expanded to CNY 692.8 billion in November, up from CNY 679.1 billion in the previous month.
- Traders adopt caution ahead of the US Consumer Price Index (CPI) data release on Wednesday.
NZD/USD retraces its recent gains, trading around 0.5830 during Asian hours on Tuesday. The New Zealand Dollar (NZD) remains subdued following China’s Trade Balance data for November. However, buyers of the Kiwi dollar welcomed the decision from New Zealand's top trading partner, China, to implement a more proactive fiscal policy and moderately loose monetary policy next year.
China's Trade Balance (CNY) expanded to CNY 692.8 billion in November, up from CNY 679.1 billion in the previous month. Exports grew by 1.5% year-over-year in November, compared to the 11.2% rise in October. Meanwhile, imports increased by 1.2% YoY, recovering from the 3.7% decline recorded earlier.
The New Zealand Dollar remains under pressure as Prime Minister Christopher Luxon reaffirms his commitment to lowering inflation and interest rates to bolster the economy. This suggests the possibility of significant rate cuts early next year.
Additionally, the NZD/USD pair depreciates as the US Dollar (USD) extends its winning streak for the third successive day as traders adopt caution ahead of the US Consumer Price Index (CPI) data release on Wednesday. Traders are now pricing in nearly an 85.8% chance of Fed rate reductions by 25 basis points on December 18, according to the CME FedWatch Tool.
On Monday, the Federal Reserve Bank of New York highlighted in its consumer survey summary that US consumers are navigating uncertain economic expectations. The survey indicated a sharp improvement in consumers' outlook on their financial situations and the federal government’s fiscal condition, alongside a significant shift in expectations regarding debt affordability and credit conditions.
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 Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | 0.00% | -0.08% | 0.08% | 0.68% | 0.55% | -0.10% | |
| EUR | 0.06% | 0.07% | -0.05% | 0.13% | 0.74% | 0.66% | -0.04% | |
| GBP | -0.00% | -0.07% | -0.13% | 0.06% | 0.67% | 0.55% | -0.11% | |
| JPY | 0.08% | 0.05% | 0.13% | 0.18% | 0.78% | 0.65% | 0.00% | |
| CAD | -0.08% | -0.13% | -0.06% | -0.18% | 0.61% | 0.49% | -0.16% | |
| AUD | -0.68% | -0.74% | -0.67% | -0.78% | -0.61% | -0.13% | -0.77% | |
| NZD | -0.55% | -0.66% | -0.55% | -0.65% | -0.49% | 0.13% | -0.65% | |
| CHF | 0.10% | 0.04% | 0.11% | -0.00% | 0.16% | 0.77% | 0.65% |
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.
