NZD/USD holds below 0.5600 on stronger US Dollar, eyes on US PMI data
The post NZD/USD holds below 0.5600 on stronger US Dollar, eyes on US PMI data appeared on BitcoinEthereumNews.com.
NZD/USD trades on a negative note near 0.5590 in Friday’s early Asian session. US weekly Initial Jobless Claims dropped to 211K vs. 222K expected. Trump’s tariffs and concerns about recovery in China’s economy undermine the China-proxy Kiwi. The NZD/USD pair remains on the defensive around 0.5590 during the early Asian session on Friday, pressured by the firmer Greenback. Investors brace for the release of the US December ISM Manufacturing Purchasing Managers Index (PMI), which is due later on Friday. Meanwhile, the US Dollar Index (DXY), a measure of the US Dollar’s value relative to its most significant trading partners’ currencies, climbed to near 109.50, its strongest since November 2022. The optimism around the US economy and the cautious stance of the US Federal Reserve (Fed) could underpin the USD in the near term. The US central bank indicated that it will be more cautious in cutting interest rates as inflation remains stubbornly above its 2% target and the economy remains robust. Data released by the US Department of Labor (DOL) on Thursday showed that the Initial Jobless Claim for the week ending December 28 declined to 211K, compared to the previous week’s print of 220K (revised from 219K). This reading came in below the market consensus of 222K. Higher tariffs threatened by US President-elect Donald Trump and instability in the Chinese economy could weigh on the China-proxy New Zealand Dollar (NZD) as China is a major trading partner for New Zealand. The latest Chinese Caixin Manufacturing Purchasing Managers Index (PMI) showed that the country’s manufacturing sector grew in December but at a slower-than-expected pace. This reading raised concerns over a slowing economic recovery in the world’s second-largest economy and might create a headwind for the Kiwi. New Zealand Dollar FAQs The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known…
Filed under: News - @ January 3, 2025 12:25 am