NZD/USD edges lower as Business NZ PSI drops to 40.2 in June, marking its fourth consecutive monthly decrease. Kelly Eckhold, Chief Economist at Westpac, anticipates that the RBNZ will begin easing policy in February 2025. The US Dollar improves due to improved risk aversion following the attempted assassination of former US President Trump on Saturday. This decline can be linked to the Business NZ Performance of Services Index , which dropped to 40.
Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency.