In the early European session on Friday, the NZD/USD drops to about 0.5670.
The resumption of the US-China trade war affects the China-proxy Kiwi and increases demand for safe havens.
Later on Friday, the focus will be on the US January NFP report.
During Friday's early European trading hours, the NZD/USD pair is under pressure from a slight recovery of the US dollar (USD) and is trading in negative territory around 0.5670. Due to the uncertainty surrounding important US Nonfarm Payrolls (NFP) data, traders would rather stay out of the market.
President Donald Trump has stated that he is not in a rush to speak with Chinese President Xi Jinping in the wake of China's measured response to US tariffs. In reaction to US President Donald Trump's announcement of a 10% tariff on Chinese imports, China's finance ministry announced a package of tariffs on a range of US goods on Tuesday, including crude oil, agricultural equipment, and some cars. Given that China is one of New Zealand's main trading partners, any indications of escalating trade war tensions between the US and China may put some selling pressure on the NZD.
Given the uncertainty surrounding Trump's policies and sticky inflation, the US Federal Reserve (Fed) indicated that it had no immediate plans to lower interest rates. For additional clues regarding the US interest rate outlook, all eyes will be on Friday's highly anticipated US Nonfarm Payrolls. This could cause the USD to decline more broadly if the result is less favorable than anticipated. While the unemployment rate is predicted to remain stable at 4.1%, economists anticipate that the US economy added about 170,000 jobs in January.
The resumption of the US-China trade war affects the China-proxy Kiwi and increases demand for safe havens.
Later on Friday, the focus will be on the US January NFP report.
During Friday's early European trading hours, the NZD/USD pair is under pressure from a slight recovery of the US dollar (USD) and is trading in negative territory around 0.5670. Due to the uncertainty surrounding important US Nonfarm Payrolls (NFP) data, traders would rather stay out of the market.
President Donald Trump has stated that he is not in a rush to speak with Chinese President Xi Jinping in the wake of China's measured response to US tariffs. In reaction to US President Donald Trump's announcement of a 10% tariff on Chinese imports, China's finance ministry announced a package of tariffs on a range of US goods on Tuesday, including crude oil, agricultural equipment, and some cars. Given that China is one of New Zealand's main trading partners, any indications of escalating trade war tensions between the US and China may put some selling pressure on the NZD.
Given the uncertainty surrounding Trump's policies and sticky inflation, the US Federal Reserve (Fed) indicated that it had no immediate plans to lower interest rates. For additional clues regarding the US interest rate outlook, all eyes will be on Friday's highly anticipated US Nonfarm Payrolls. This could cause the USD to decline more broadly if the result is less favorable than anticipated. While the unemployment rate is predicted to remain stable at 4.1%, economists anticipate that the US economy added about 170,000 jobs in January.
