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NZD/USD WEAKENS BELOW 0.5650 AS CHINA'S CPI FALLS IN MARCH

Tina Collins

Tina Collins

— 1 min read
NZD/USD WEAKENS BELOW 0.5650 AS CHINA'S CPI FALLS IN MARCH
NZD/USD WEAKENS BELOW 0.5650 AS CHINA'S CPI FALLS IN MARCH

NZD/USD WEAKENS BELOW 0.5650 AS CHINA'S CPI FALLS IN MARCH

The NZD/USD pair softened to approximately 0.5630 during the early Asian session on Thursday, marking a decline below the 0.5650 threshold. ​

China's Consumer Price Index (CPI) rose by only 0.1% year-on-year in March, significantly lower than the 0.7% increase in February and below the anticipated 0.4% rise. ​

The subdued CPI data from China, New Zealand's primary trading partner, raised concerns about slowing economic growth, exerting downward pressure on the New Zealand Dollar (NZD). ​

The Reserve Bank of New Zealand (RBNZ) recently maintained its Official Cash Rate (OCR) at 5.5%. However, the persistent economic challenges may prompt the RBNZ to consider rate cuts, adding to the NZD's weakness. ​

In contrast, the robust US economy and elevated inflation have led the Federal Reserve to delay cutting interest rates this year, supporting the US Dollar and contributing to the NZD/USD pair's decline. ​

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