The NZD/USD pair is on the rise, trading around 0.5940 during the Asian session on Thursday. The New Zealand Dollar (NZD) is gaining momentum as investors show optimism about tensions easing between Israel and Iran. This positive sentiment is supported by reports of no immediate retaliation from Iran against Israeli airstrikes.
In China, the People’s Bank of China (PBoC) is considering reducing the Medium-term Lending Facility (MLF) rate to lower funding costs. This move could stimulate economic activity and increase demand for New Zealand goods and services in the Chinese market.
The US Dollar Index (DXY) has weakened slightly due to mixed manufacturing data from the US. However, gains in US Treasury yields have helped limit the Greenback’s losses.
US Durable Goods Orders rose 2.6% month-over-month in March, exceeding expectations. Core goods, excluding transportation, saw a slight increase of 0.2% MoM, falling short of the predicted 0.3%.
Upcoming preliminary Gross Domestic Product Annualized (Q1) data for the US is expected to show a slowdown in growth. These figures will provide insights into the strength of the US economy and may impact future decisions by the Federal Reserve (Fed).