NZD/USD holds gains above 0.5950 as PBoC maintains interest rates

Source Fxstreet
  • NZD/USD advances as worries over the potential economic fallout in the US continue to weigh on the US Dollar.
  • The New Zealand Dollar remains firm after the PBoC held its one- and five-year LPRs at 3.10% and 3.60%, respectively.
  • The White House has intensified US-China trade tensions by imposing tariffs on Chinese vessels docking at US ports.

NZD/USD continues its winning streak that began on April 9, trading near 0.5970 during Monday’s Asian session. The New Zealand Dollar (NZD) is buoyed by a weaker US Dollar (USD), which is under pressure due to mounting concerns over the US economic fallout from US tariffs.

The New Zealand Dollar remains stronger following Monday's People's Bank of China’s (PBoC) interest rate decision. The PBoC left its Loan Prime Rates (LPRs) unchanged, keeping the one-year rate at 3.10% and the five-year rate at 3.60%.

Sentiment toward the NZD improved after US President Donald Trump announced exemptions for key tech products, mainly manufactured in China, New Zealand’s largest trading partner, from the proposed “reciprocal” tariffs. Meanwhile, the US Dollar Index (DXY) drops over 0.50%, trading around 98.50, its lowest level since April 2022, at the time of writing.

Despite the exemptions, the White House has imposed tariffs on Chinese ships docking at US ports, threatening to disrupt global shipping routes and further escalate tensions in the US-China trade conflict.

In political developments, reports on Thursday suggested President Trump’s frustration with Federal Reserve (Fed) Chair Jerome Powell, even considering his removal. Although markets showed little immediate reaction, White House economic adviser Kevin Hassett confirmed that Trump is exploring the possibility.

Economic Indicator

PBoC Interest Rate Decision

The People’s Bank of China’s (PBoC) Monetary Policy Committee (MPC) holds scheduled meetings on a quarterly basis. However, China’s benchmark interest rate – the loan prime rate (LPR), a pricing reference for bank lending – is fixed every month. If the PBoC forecasts high inflation (hawkish) it raises interest rates, which is bullish for the Renminbi (CNY). Likewise, if the PBoC sees inflation in the Chinese economy falling (dovish) and cuts or keeps interest rates unchanged, it is bearish for CNY. Still, China’s currency doesn’t have a floating exchange rate determined by markets and its value against the US Dollar is fixed mainly by the PBoC on a daily basis.

Read more.

Last release: Thu Mar 20, 2025 01:15

Frequency: Irregular

Actual: 3.1%

Consensus: 3.1%

Previous: 3.1%

Source: The People's Bank of China

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Reclaims $70,000. Cathie Wood Claims Near Potential Bottom, Will This Time Be Different?Bitcoin price rebounds above $70,000; Cathie Wood calls a "potential bottom" again, but the reality may differ.On Monday (February 9), Bitcoin ( BTC) price momentum has stalled, fluctuati
Author  TradingKey
11 hours ago
Bitcoin price rebounds above $70,000; Cathie Wood calls a "potential bottom" again, but the reality may differ.On Monday (February 9), Bitcoin ( BTC) price momentum has stalled, fluctuati
placeholder
A Crash After a Surge: Why Silver Lost 40% in a Week?TradingKey - Spot Silver ( XAGUSD) prices have continued to decline; on Thursday, silver plummeted as much as 20% to break below $71 per ounce, and on Friday the sell-off intensified as prices fell fu
Author  TradingKey
Feb 06, Fri
TradingKey - Spot Silver ( XAGUSD) prices have continued to decline; on Thursday, silver plummeted as much as 20% to break below $71 per ounce, and on Friday the sell-off intensified as prices fell fu
placeholder
Bitcoin is trading around $63,000, down nearly 40% from its peak near $126,000Wall Street desks are no longer talking about upside dreams. The talk right now is how far Bitcoin charts could fall if selling keeps piling up. According to data from TradingView, Bitcoin’s price now sits at a shocking $63,500, after falling from $70,000 just this morning, losing $13,000 in 6 days, and staying far below […]
Author  Cryptopolitan
Feb 06, Fri
Wall Street desks are no longer talking about upside dreams. The talk right now is how far Bitcoin charts could fall if selling keeps piling up. According to data from TradingView, Bitcoin’s price now sits at a shocking $63,500, after falling from $70,000 just this morning, losing $13,000 in 6 days, and staying far below […]
placeholder
WTI declines below $63.00 as US-Iran talks loom West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.85 during the Asian trading hours on Friday. The WTI price declines after the United States (US) and Iran agreed to hold talks in Oman on Friday. 
Author  FXStreet
Feb 06, Fri
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.85 during the Asian trading hours on Friday. The WTI price declines after the United States (US) and Iran agreed to hold talks in Oman on Friday. 
placeholder
Bitcoin Surrenders $65,000 as Analysts Warn of ‘Structural’ Market BreakBitcoin plunges 11% to break $65k as analysts term the crash "structural," citing a $1 trillion market wipeout and $2.09 billion in daily liquidations.
Author  Mitrade
Feb 06, Fri
Bitcoin plunges 11% to break $65k as analysts term the crash "structural," citing a $1 trillion market wipeout and $2.09 billion in daily liquidations.
Related Instrument
goTop
quote