NZD/USD sustains strength at about 0.5650 as China’s Services PMI picked up optimistically despite a substantial leadership change in the Reserve Bank of New Zealand (RBNZ). The more-than-anticipated increase in China’s Services PMI to 51.4 indicates healthy economic momentum that can affect the New Zealand Dollar on account of good trade relationships. At the same time, RBNZ Governor Adrian Orr’s resignation introduces uncertainty, as Deputy Governor Christian Hawkesby takes over on an acting basis until March 31. On the US side, the Greenback comes under pressure as markets respond to newly imposed tariffs by President Trump and rumors of a policy flip. The US Dollar Index (DXY) trades at around 105.70 amidst increasing fears regarding economic growth and trade policies.

KEY LOOKOUTS

• China’s Services PMI rise to 51.4 indicates economic strength, which could strengthen the New Zealand Dollar as a result of robust trade relations.

• Governor Adrian Orr’s resignation is uncertain, where Deputy Governor Christian Hawkesby will hold position temporarily until March 31, waiting for an interim replacement.

• President Trump’s tariff increase on Canada, Mexico, and China is under scrutiny, and there are rumors that he might reverse policies in face of economic uncertainty.

• US Dollar Index (DXY) near 105.70 captures market anxiety regarding trade tensions and possible changes in Trump’s tariff policy.

NZD/USD is holding firm at 0.5650 following a higher-than-expected China Services PMI and major events at the Reserve Bank of New Zealand (RBNZ). China’s PMI increased to 51.4, supporting economic durability and possibly underpinning the New Zealand Dollar because of close trading relationships. Meanwhile, RBNZ Governor Adrian Orr’s resignation is an added uncertainty, with Deputy Governor Christian Hawkesby holding the fort until a temporary appointment is made. On the American side, President Trump’s latest tariff increases on Canada, Mexico, and China are under fire, with talk of him revisiting his policy in light of economic worries. The US Dollar Index (DXY) holds steady at 105.70, a measure of market jitters over trade tensions and policy changes.

NZD/USD remains stable around 0.5650 amid a positive China Services PMI and RBNZ Governor Adrian Orr’s resignation. On the other hand, US tariff concerns drag on the US Dollar.

• The pair remains stable around 0.5650 amid positive Chinese economic data and leadership changes at the RBNZ.

• The index increased to 51.4 in February, above forecast, and points to economic resilience, which could be supportive of the New Zealand Dollar.

• Governor Adrian Orr resigns, to be replaced by Deputy Governor Christian Hawkesby on an acting basis until March 31.

• President Trump’s tariff increases on Canada, Mexico, and China raise market fears, with talk of policy change reversal.

• The US Dollar Index (DXY) is traded around 105.70, under pressure from below as trade tensions and fears of economic slowdown weigh.

• US Commerce Secretary Lutnick suggests that Trump is considering revising his tariff position within less than 48 hours of imposition.

• Economic statistics and trade policy from China, New Zealand, and the US continue to drive market movement and currency performance.

NZD/USD stays stable as events on the global economic and political front continue. China’s Services PMI unexpectedly climbed to 51.4, indicating a stronger economy, which is important to New Zealand given their robust trade relationship. Meanwhile, the Reserve Bank of New Zealand (RBNZ) is also changing leadership, as Governor Adrian Orr has resigned. Deputy Governor Christian Hawkesby has taken over as acting governor until March 31, and this brings with it an element of transition within the nation’s financial leadership. Though these elements have contributed to confidence in the market, there are still doubts on how new leadership will influence monetary policies in the future.

NZD/USD Daily Price Chart

Chart Source: TradingView

Internationally, the US is increasingly plagued by concerns with its recent tariffs. President Trump’s move to raise tariffs on imports from Canada, Mexico, and China has raised questions over possible economic impacts. US Commerce Secretary Howard Lutnick indicated that the administration could revisit the tariffs, but reports say Trump is keen to keep them in place. This constant uncertainty over trade policies may affect global markets and investor sentiment as companies and governments weigh the long-term effects of these actions.

TECHNICAL ANALYSIS

NZD/USD is trading flat at the 0.5650 level, reflecting consolidation following recent market action. The duo encounters instant resistance around the 0.5680 handle, with a break higher perhaps paving the way for more upside momentum. On the flip side, the area of 0.5620 has been a recent support level that has held firm. The 50-day moving average is in a neutral trend, and RSI hovers in a balanced zone, indicating indecision in the market. If the buying momentum picks up, the pair would challenge higher levels of resistance, while a breakdown below significant support levels would initiate further downward movement.

FORECAST

NZD/USD may steady higher above the 0.5680 resistance level and potentially as far as 0.5720 in the near term. A convincing breakout above this level would reinforce bullish sentiment and drive the pair to 0.5750. Supporting factors for this upward movement would be sustained economic strength in China, favorable sentiment regarding New Zealand’s trade prospects, and weakness in the US Dollar if market worries about trade tariffs increase. Moreover, any dovish communication from the Federal Reserve or de-escalation of US trade tensions would further propel upside movement.

To the downside, as selling pressure builds, NZD/USD may test support around 0.5620, and a breakdown below this may see a further fall to 0.5580. A stronger US Dollar, driven by safe-haven demand or expectations of hawkish monetary policy, may speed up this decline. On top of that, any negative Chinese economic news or doubt about Reserve Bank of New Zealand leadership succession might act as a drag on the New Zealand Dollar. Under deteriorating global risk sentiment, the pair might experience further losses, with 0.5550 being a key support level to monitor.