Ella 
NZD/USD lost momentum during Asian trading on Tuesday, falling to around 0.5880. The New Zealand dollar (NZD) weakened as US President-elect Donald Trump threatened further tariffs. Investors awaited U.S. JOLTS job openings for October to be released later on Tuesday, as well as speeches from Fed officials Adriana Kugler and Austan Goolsbee.
Federal Reserve officials on Monday stressed the need to continue cutting interest rates next year, but they stopped short of committing to a rate cut later this month. Federal Reserve Governor Christopher Waller said he would be inclined to vote to lower borrowing costs when Fed members meet on Dec. 17-18, but noted that data released before then could support a move to hold the Fed on hold.
Data released by the Institute for Supply Management (ISM) on Monday showed that the U.S. manufacturing industry improved more than expected in November, but continued to contract. The U.S. ISM Manufacturing Purchasing Managers’ Index rose to 48.4 in November from 46.5 in October, which was better than expectations of 47.5.
The U.S. Bureau of Labor Statistics will release its nonfarm payrolls (NFP) report on Friday, which may provide some hints about labor market conditions and the outlook for U.S. interest rates. U.S. nonfarm payrolls are expected to add 195,000 jobs in November.
In NZD, Trump has proposed imposing 25% tariffs on all products from Mexico and Canada, with an additional 10% tariff on goods from China. The tariffs could lead to a global trade war and could weigh on the New Zealand dollar, as China is New Zealand’s main trading partner.
