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
China's factories are pricing in 5.7%. Its shoppers are pricing in 0.7%.China's October PPI rose 5.7% year on year, the fastest since June 2022, while CPI slowed to 0.7% and core CPI to 0.8%. Input prices rose faster than factory-gate prices, squeezing mid-stream margins by roughly five percentage points. The Hang Seng fell 0.13% on a day the S&P 500 rose 2.35%, the only major market to sit out the risk-on session.
Author  Irene Q.
Nov 10, Tue
China's October PPI rose 5.7% year on year, the fastest since June 2022, while CPI slowed to 0.7% and core CPI to 0.8%. Input prices rose faster than factory-gate prices, squeezing mid-stream margins by roughly five percentage points. The Hang Seng fell 0.13% on a day the S&P 500 rose 2.35%, the only major market to sit out the risk-on session.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - November 11, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for November 11, 2026. Read on for the details.
Author  Mitrade
Nov 11, Wed
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for November 11, 2026. Read on for the details.
placeholder
Gold Extends Slide Below $4,000 as Rising US Inflation, Fed December Hike Bets Pressure Prices On November 12, gold prices (XAUUSD) extended their recent losses, falling further below $4,000 in early Asian trading to hit an intraday low near $3,968, marking a third consecutive day
Author  TradingKey
Yesterday 02: 00
On November 12, gold prices (XAUUSD) extended their recent losses, falling further below $4,000 in early Asian trading to hit an intraday low near $3,968, marking a third consecutive day
placeholder
Gold closed below $4,000 again — the ETF crowd and central banks stayed, the momentum money leftSpot gold is trading near $3,999, its third consecutive lower daily low, after a 5.00% 10-year yield and a 102.85 dollar index raised the odds of a December hike to 87%. But the selling is not coming from the strategic holders: managed-money net longs fell to 324 tonnes, a 21-week low, and Goldman Sachs attributes roughly 95% of five weeks of selling to non-reportable positions. ETFs still hold a record 4,256 tonnes and central banks bought 321 tonnes in Q3. The table below sets the triggers, directions and levels.
Author  Irene Q.
Yesterday 03: 20
Spot gold is trading near $3,999, its third consecutive lower daily low, after a 5.00% 10-year yield and a 102.85 dollar index raised the odds of a December hike to 87%. But the selling is not coming from the strategic holders: managed-money net longs fell to 324 tonnes, a 21-week low, and Goldman Sachs attributes roughly 95% of five weeks of selling to non-reportable positions. ETFs still hold a record 4,256 tonnes and central banks bought 321 tonnes in Q3. The table below sets the triggers, directions and levels.
placeholder
US October PPI Preview: Fed Rate Hike Expectations Rise, PPI May Be Key Variable; How Will US Stocks, Dollar, and Gold Move?On Friday (Nov. 13) Eastern Time, the U.S. will release the October Producer Price Index (PPI). Following the October CPI once again exceeding expectations, the market will look to the PP
Author  TradingKey
Yesterday 08: 36
On Friday (Nov. 13) Eastern Time, the U.S. will release the October Producer Price Index (PPI). Following the October CPI once again exceeding expectations, the market will look to the PP
Related Instrument
goTop
quote