NZD/USD remains subdued near 0.5700 ahead of US CPI data
- NZD/USD struggles amid broad risk aversion, driven by policy shifts from US President Donald Trump.
- The New Zealand Dollar faces headwinds as deflationary pressures in China deepen, weighing on market sentiment.
- Headline US CPI inflation is expected to ease in February after picking up momentum in January.
NZD/USD edges lower after registering gains in the previous session, trading around 0.5710 during the Asian hours on Wednesday. The pair faces headwinds amid broad risk aversion, driven by policy shifts by US President Donald Trump, particularly tariffs that increased the likelihood of a prolonged trade war.
On data front, Electronic card transactions in New Zealand rose by 0.3% to NZD 6,528 million on a seasonally adjusted basis in February 2025. Consumables saw a 0.6% increase, while apparel gained 1%. Fuel remained unchanged, showing no significant movement.
Additionally, the New Zealand Dollar (NZD) faces headwinds as deflationary pressures in China intensify. February saw the steepest decline in consumer prices in 13 months, alongside the 29th consecutive monthly drop in factory-gate prices. Given China’s role as New Zealand’s largest trading partner, these developments have dampened market sentiment.
However, the downside of the NZD/USD pair may be limited as the US Dollar (USD) faces headwinds amid concerns over a potential economic slowdown in the United States (US). US President Donald Trump described the economy as being in a "transition period," which investors interpreted as an early sign of possible turbulence ahead.
With the Federal Reserve in its blackout period ahead of the March 19 meeting, central bank commentary will be minimal this week. Traders are shifting their focus to February’s US Consumer Price Index (CPI) release on Wednesday for further insights into inflation trends.
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 US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.10% | 0.09% | 0.10% | 0.02% | 0.10% | 0.11% | 0.04% | |
| EUR | -0.10% | -0.01% | -0.03% | -0.08% | -0.01% | 0.02% | -0.05% | |
| GBP | -0.09% | 0.01% | 0.02% | -0.07% | 0.00% | 0.02% | -0.05% | |
| JPY | -0.10% | 0.03% | -0.02% | -0.09% | -0.01% | 0.00% | -0.05% | |
| CAD | -0.02% | 0.08% | 0.07% | 0.09% | 0.08% | 0.10% | 0.03% | |
| AUD | -0.10% | 0.00% | -0.00% | 0.00% | -0.08% | 0.02% | -0.04% | |
| NZD | -0.11% | -0.02% | -0.02% | -0.00% | -0.10% | -0.02% | -0.06% | |
| CHF | -0.04% | 0.05% | 0.05% | 0.05% | -0.03% | 0.04% | 0.06% |
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.
