Ella 
In early Asian trading on Tuesday, NZD/USD fell moderately to around 0.5635. Investors are awaiting the release of China’s National Bureau of Statistics (NBS) manufacturing and non-manufacturing purchasing managers’ indexes for December later on Tuesday.
The Federal Reserve (Fed) decided to cut interest rates by 25 basis points at its December meeting and expects only two rate cuts in 2025, down from the original forecast of four. This in turn boosted the US dollar overall and weighed on NZD/USD.
Data released by the National Association of Realtors (NAR) on Monday showed that the monthly rate of existing homes for sale in the United States rose 2.2% in November from 1.8% in the previous month (revised to 2.0%). The data was 0.7% better than expected. Meanwhile, the Chicago Purchasing Managers’ Index fell to 36.9 in December from 40.2 previously, weaker than expectations for a reading of 42.5.
The New Zealand dollar is one of the worst-performing currencies in the Group of 10. As of December 27, the New Zealand dollar/US dollar fell by more than 10%. The Reserve Bank of New Zealand’s (RBNZ) dovish policy outlook and Donald Trump’s tariff threats have put some selling pressure on NZD/USD.
However, as China is New Zealand’s main trading partner, new stimulus measures taken by the Chinese government over the weekend may help limit the New Zealand dollar’s losses. China’s government said it would provide help to people struggling with the cost of living and vowed to provide more benefits to some jobless people ahead of a major national holiday.
