Ella 
NZD/USD continued to fall after rising about 1% in the previous session, trading around 0.5760 in Asian hours. The New Zealand dollar (NZD) weakened following the release of domestic trade balance data on Friday.
New Zealand recorded a trade deficit of $486m in the January 2025 period, a reversal from a revised $94m surplus in December (previously $219m). Goods exports fell from $6.67 billion to $6.19 billion, while imports rose from $6.62 billion to $6.8 billion.
The Reserve Bank of New Zealand (RBNZ) cut interest rates by 50 basis points to 3.75% at its latest policy meeting on Wednesday, in line with expectations. Reserve Bank of New Zealand (RBNZ) chief economist Paul Conway noted on Friday that “the Official Cash Rate (OCR) forecasts suggest another 75 basis points of rate cuts are in the cards.” Governor Adrian Orr earlier said more rate cuts were likely in the coming months to support the weakening economy as inflation slows.
However, NZD/USD strengthened as the United States dollar (USD) struggled amid weak jobless claims data. Initial jobless claims in the U.S. for the week ended February 14 increased to 219,000, exceeding expectations for a rise of 215,000. Continuing claims also rose slightly to 1.869 million, just below the forecast of 1.87 million.
Elsewhere, NZD/USD also gained amid improved market sentiment after U.S. President Donald Trump announced potential progress in trade talks with China, easing market concerns over tariffs.
You Might Be Interested In:
