NZD/USD Exchange rate
Editors’ Picks
AUD/USD bulls pause for a breather ahead of the US PCE Price Index
AUD/USD holds above 0.6600 in Friday’s Asian session, remaining close to yesterday's two-month high. Divergent RBA-Fed policy expectations support spot prices amid a broadly weaker US Dollar. However, bulls are pausing ahead of today’s key US PCE Price Index. Still, spot prices remain on track to register strong gains for the second consecutive week.
USD/JPY stays pressured near 155.00 on Fed-BoJ policy divergence
USD/JPY remains weak near 155.00 in the Asian session on Friday. The pair faces headwinds from expectations of the Fed-BoJ monetary policy divergence, which outweighs the fall in Japanese Household Spending in October. All eyes are on the delayed US Personal Consumption Expenditures Price Index data for September later on Friday.
Gold flat lines near $4,200 ahead of US PCE inflation release
Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data. The US delayed the Personal Consumption Expenditures Price Index report for September, which will be published later on Friday.
XRP slides amid record on-chain activity, mixed technical signals
Ripple (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.
Why the Fed may cut rates in December: Understanding the policy shift
The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.
Majors
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Signatures
ABOUT NZD/USD
The NZD/USD pair indicates how many US Dollars (USD) are required to purchase one New Zealand Dollar (NZD). Often seen as a minor currency, its relevance stems from New Zealand’s strong commercial ties with its neighbor, Australia, and China. The New Zealand Dollar is commonly referred to as the Kiwi, named after the bird that symbolizes New Zealand.
The New Zealand Dollar, along with the Australian Dollar (AUD) and the Canadian Dollar (CAD), is considered a commodity currency, meaning its value is closely tied to the export of raw materials such as precious metals, Oil, and agricultural products .
For many years, the NZD (like the Australian Dollar) has been one of the preferred choices for carry traders, making it very sensitive to changes in interest rates.
HISTORIC HIGHS AND LOWS FOR NZD/USD
- All-time records: Max: 1.49 on 5/11/1973 – Min: 0.3962 on 16/10/2000
- Last 5 years: Max: 0.7465 on 19/02/2021 – Min: 0.5469 on 13/03/2020
* Data as of December 2024
ASSETS THAT INFLUENCE NZD/USD THE MOST
- Currencies: The Australian Dollar (AUD), the Chinese Yuan (CNY), and the Japanese Yen (JPY), as Australia, China, and Japan are the main economic regional partners of New Zealand. This group also includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, USD/CAD, GBP/JPY and EUR/JPY.
- Commodities: First and foremost, coal. New Zealand has extensive coal resources, contributing approximately 10% to the country’s energy supply (excluding transport fuels). Other key commodities are Silver and Iron Ore.
- Bonds: GNZGB10 (New Zealand 10-Year Government Bond Yield), AGB (debt securities issued by the Australian Government), and T-NOTE 10Y (10-year United States Treasury note).
- Indices: NZX (New Zealand Exchange), ASX (Australian Securities Exchange), and Nikkei 225 (a stock market index for the Tokyo Stock Exchange).
INFLUENTIAL ORGANIZATIONS, PEOPLE AND ECONOMIC DATA FOR NZD/USD
The organizations and people that affect the most the moves of the NZD/USD pair are:
- The Reserve Bank of New Zealand (RBNZ). It is New Zealand's central bank. Its primary role is to “give people, communities and businesses the confidence to spend, borrow and save money” by maintaining a sound and efficient monetary and financial system. The RBNZ achieves this by managing inflation to keep prices stable, regulating banks and finance companies, producing New Zealand’s banknotes and coins and operating effective wholesale payment and settlement systems. The current governor is Anna Breman.
- The New Zealand Government – whose Prime Minister is Christopher Luxon – and its Ministry of Business, Innovation, and Employment (MBIE), which implements policies that affect the economy of the country.
- Asia-Pacific Economic Cooperation (APEC), a forum for 21 Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region.
- The US Government and its President Donald Trump. Administration statements, new laws and regulations, or fiscal policy decisions can influence the value of the US Dollar and its trading pairs, including the New Zealand Dollar.
- The Federal Reserve of the United States (Fed), whose chairman is Jerome Powell . It is the central bank of the US and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.
Economic data to watch for NZD/USD traders:
- GDP (Gross Domestic Product): The total market value of all final goods and services produced in a country. It serves as a gross measure of economic activity, indicating whether a country's economy is expanding or contracting. A high or a better - than-expected reading is generally positive for the NZD, while a low reading tends to be negative.
- Inflation indicators: Key measures such as the Consumer Price Index (CPI) and the Producer Price Index (PPI) reflect changes in prices.