NZD/USD inches higher to near 0.5900 following Q2 RBNZ Inflation Expectations release

• NZD/USD acquired the ground as expectations of RBNZ inflation, in Q2 2.29% quarter-fourth, before 2.06%.
• After the initial agreement between the US and China, the risk-sensitive NZD has gained support amid reducing global trade stress.
• The US dollar is limited to a narrow trading range, as recently US economic data has given mixed indications.

NZD/USD stops its two -day lost streak, trading around 0.5890 during the Asian hours on Friday. The pair proceeds after the Reserve Bank of New Zealand (RBNZ) release the expectations of inflation for Q2 2025.

Expectations increased to a distance from 2.29% quarter to 2.06%. This metric reflects the forecasts of business managers for the annual CPI two years ago. Additionally, compared to the pre -53.2 readings, the business NZ PMI increased to 53.9 in April.

Risk-sensitive New Zealand Dollar (NZD) has gained support from reducing global trade stress. An initial agreement has been signed between the US and China, in which the US has reduced tariffs from 145% to 30% on Chinese goods, while China will cut tariffs from 125% to 10% on US imports. The market spirit has also been provoked by renewed optimism around a potential American-Iran nuclear deal.

Meanwhile, recently American economic data has painted a mixed picture – highlighting the inherent flexibility in the economy, but also indicates loss of speed of growth. It has placed US dollar trading in a narrow range.

In April, the US manufacturer price index (PPI) increased by 2.4% year-on-year, March 2.7% increase and 2.5% below the decline in market forecasts. The core PPI, which excludes food and energy, increased by 3.1% annually before 4%. On a monthly basis, the headline PPI declined by 0.5%, while the core PPI fell by 0.4%. The initial unemployed claims for the week ended on May 10 kept stable at 229,000, which matches the earlier week’s revised figures and market expectations.