The post New Zealand’s Business NZ PSI drops to 43.0 in May vs. 47.1 prior appeared on BitcoinEthereumNews.com.

New Zealand’s Business NZ Performance of Services Index (PSI) dropped to 43.0 in May from the previous reading of 47.1, according to Business NZ on Monday.  The figure registered the lowest level for a non-COVID lockdown month since the survey began in 2007. “The speed of decline is as worrisome as its size over the past three months. There is weak and then there is very weak. Overall, this tells of a services sector in reverse at pace,” said BNZ’s Senior Economist Doug Steel. Market Reaction At the press time, the NZD/USD pair is down 0.05% on the day to trade at 0.6138. New Zealand Dollar FAQs The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD. The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest…

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Filed under: News - @ June 16, 2024 11:26 pm