- NZD/USD softens to around 0.5695 in Thursday’s Asian session.
- China’s central bank kept benchmark lending rates steady.
- Trump tariff threats could lift the US dollar and create a headwind for NZD/USD.
The NZD/USD pair trades on a negative note around 0.5695 during the Asian trading hours on Thursday. Traders brace for the US weekly Initial Jobless Claims, the CB Leading Economic Index and the Philly Fed Manufacturing Index reports, which are due later on Thursday.
On Thursday, the People’s Bank of China (PBOC) held the 1-year Loan Prime Rate (LPR) unchanged at 3.1% and the 5-year LPR at 3.6%. The Chinese authorities prioritize financial stability over interest rate easing to bolster the economy.
The Kiwi remains under selling pressure on the dovish stance of the Reserve Bank of New Zealand (RBNZ). The RBNZ cut its benchmark rate by 50 basis points (bps) to 3.75% at its February meeting on Wednesday. The central bank signaled further reductions in borrowing costs amid moderating inflation as policymakers sought to boost a struggling economy.
Meanwhile, the fresh US President Donald Trump tariff threats could boost the safe-haven flows, benefiting the Greenback in the near term. Since the inauguration last month, Trump has imposed a 10% tariff on all imports from China, on top of existing tariffs of up to 25%. Late Tuesday, Trump said that he would likely impose tariffs of around 25% on foreign cars, while semiconductor chips and drugs are set to face higher duties.
