NZD/USD surges toward 0.5850 near four-month highs
NZD/USD extends its gains for the third successive session, trading around 0.5830 during the early European hours on Tuesday. The pair appreciates to near four-month highs as the US Dollar (USD) comes under pressure from rising uncertainty over the US–Greenland issue.
US President Donald Trump threatened on Saturday that 10% tariff would be levied on goods from European Union (EU) members, effective February 1, until the US is permitted to purchase Greenland. Meanwhile, French President Emmanuel Macron reportedly urged the European Union to activate its “trade bazooka,” a measure that could restrict US access to EU markets or impose export controls, among other potential countermeasures.
The Kiwi Dollar also strengthened after the BusinessNZ Performance of Services Index (PSI) climbed to 51.5 in December 2025 from 46.9 in November, returning to expansion and ending the longest contraction streak since the survey began, though it remains below its long-term average of 52.8. Traders have shifted their focus to the New Zealand Consumer Price Index (CPI) inflation report later in the week. The headline CPI is expected to show an increase of 0.5% QoQ in Q4.
The People’s Bank of China (PBOC), China's central bank, announced to leave its Loan Prime Rates (LPRs) unchanged on Tuesday. The one-year and five-year LPRs were at 3.00% and 3.50%, respectively. It is essential to note that any changes in the Chinese economy could impact the New Zealand Dollar (NZD), as both countries are close trading partners.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Trump Rejects Iran's Proposal for Talks; Global Stocks and Bonds Under Pressure, Oil Prices Up Over 2%, Gold Falls Below 4200
Trump rejected Iran's latest proposal to reopen the Strait of Hormuz, causing the optimistic sentiment in the market last Friday to quickly reverse amidst the Middle East diplomatic stalemate. Brent crude oil rose over 2%, gold fell below $4,200, and silver dropped more than 4%. Asia-Pacific stock markets broadly declined, with South Korea's KOSPI falling over 2%. Global bond markets came under pressure, and the yield on the US 2-year Treasury rose to 4.90%. Market focus will shift to this week's PCE inflation data and the non-farm payroll report.
Indian Rupee starts the week negatively amid higher oil prices
AI demand drives TSMC to accelerate capacity expansion, 2nm monthly production aims for 120,000 wafers by year-end
According to reports, industry giants such as Apple, Nvidia, and AMD have collectively increased their orders by 10% to 20%, directly boosting TSMC's 2nm monthly production capacity to 120,000 wafers by the end of the year, which exceeds the previous estimate by more than 20% and brings forward the 2027 target by two years. For the first time in history, five factories will ramp up production simultaneously, and the annual compound growth rate of capacity from 2026 to 2028 will reach as high as 70%.
Long-term US Treasury Sell-off Continues! 10-Year Treasury Yield Breaks 5.2% Again, “AI Boom vs. Rising Financing Costs” Narrative Showdown Intensifies
On Monday, oil prices rose and US Treasury bonds were sold off again as former US President Donald Trump rejected Iran's latest proposal to reopen the Strait of Hormuz, heightening concerns about inflation.
Crypto prices
More
