NZD/USD trades with mild gains near 0.5765 in Friday’s early Asian session.
US Initial Jobless Claims came in weaker than expected last week.
Trump tariff threats could drag the Kiwi lower.
The NZD/USD pair extends the rally to around 0.5765 during the early Asian session on Friday, pressured by the softer US dollar (USD). Traders will keep an eye on the preliminary reading of the US S&P Global Purchasing Managers Index (PMI) for February, which is due later on Friday.
The weaker-than-expected US Initial Jobless Claims weigh on the Greenback. Data released by the US Department of Labor (DoL) on Thursday showed that the US Initial Jobless Claims for the week ending February 15 rose to 219K, compared to the previous week's revised tally of 214K (from 213K). This figure came in above the market consensus of 215K.
The Reserve Bank of New Zealand (RBNZ) cut interest rates by 50 basis points (bps) to 3.75% at the latest policy meeting on Wednesday, as widely expected. RBNZ Governor Adrian Orr signaled that further rate cuts are on the way in the coming months amid moderating inflation as policymakers sought to boost a struggling economy. ING analysts said, “NZD is benefiting from seeing the end of the easing cycle sooner than previously thought.”
However, the concern about US tariffs US President Trump’s tariff threats might exert some selling pressure on the Kiwi. On Wednesday, Trump said that he would announce fresh tariffs within the next month, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals.
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