- NZD/USD appreciates as the US Dollar struggles amid uncertainty over White House economic policies.
- IMF’s Kristalina Georgieva said tariff-driven inflation supports cutting rates toward 3.25%–3.50% for full employment.
- New Zealand’s ANZ Business Confidence fell to 59.2 in February, the lowest since last October.
NZD/USD extends its gains for the third consecutive day, trading around 0.6000 during the Asian hours on Thursday. The pair appreciates as the US Dollar (USD) remains under pressure amid ongoing uncertainty over the White House’s economic policies.
US President Donald Trump said in his State of the Union (SOTU) address on Tuesday that the US economy is rebounding, defended tariffs as growth-supportive, and criticized the Supreme Court for striking down part of his tariff policy.
Additionally, International Monetary Fund Managing Director Kristalina Georgieva said US goods inflation has been partly driven by tariffs and suggested that reducing the federal funds rate toward 3.25%–3.50% would align with a return to full employment. However, she stressed that placingthe US public debt on a sustainable downward path will require firm fiscal action.
New Zealand’s ANZ Business Confidence Index declined to 59.2 in February from 64.1 in January, marking its lowest level since last October, though it remained firmly in positive territory. The ANZ Activity Outlook edged up slightly to 52.6 from 51.6. Meanwhile, inflation expectations climbed to 2.93% from 2.77%, the highest reading since April 2024.
Reserve Bank of New Zealand (RBNZ) Governor Anna Breman said last week that while the path back to 2% inflation has been uneven, inflation is expected to return to the target range in the first quarter of this year.
