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2025-12-15 11:23:35
[New Zealand Dollar Weakens Slightly, Dragged Down by Data from Major Asian Markets] 1. During Monday's Asian trading session, the New Zealand dollar weakened against the US dollar, falling below the 0.58 level and dropping as much as 0.5% to 0.5772, a three-day low, due to weaker-than-expected economic data from major Asian markets. Later on Monday, Federal Reserve officials, including Fed Governor Milan and New York Fed President Williams, will speak. The delayed US October non-farm payrolls report (NFP) will be released on Tuesday, becoming a key focus. 2. Data released by the National Bureau of Statistics (NBS) on Monday showed that China's retail sales rose 1.3% year-on-year in November, slowing from 2.9% in October. Meanwhile, China's industrial production rose 4.8% year-on-year, lower than the expected 5.0% and the previous 4.9%. This put some selling pressure on the New Zealand dollar, as major Asian markets are New Zealand's main trading partners. 3. Earlier on Monday, Reserve Bank of New Zealand (RBNZ) Governor Anna Breman said the economic outlook was broadly in line with the Monetary Policy Committee's expectations, and there were signs that growth was recovering. While there is a possibility of a slight further rate cut, the Official Cash Rate (OCR) is likely to remain at its current level of 2.25% for some time if things develop as expected. The RBNZ governor's cautious stance may help limit the New Zealand dollar's decline in the short term. 4. The Federal Reserve announced its third and final rate cut of the year last week, cutting 25 basis points to lower the target range to 3.50%-3.75%. Fed Chairman Powell stated at the press conference that policymakers need time to observe the impact of this year's three rate cuts on the US economy. 5. Traders will be closely watching Tuesday's US October non-farm payrolls report. This report may provide more clues about the health of the labor market and could influence expectations for the Fed's January meeting. If the report shows signs of weakness in the US labor market, it could drag the dollar lower and provide upward momentum for the currency pair. 6. New Zealand is expected to release its mid-year budget update on Tuesday and its third-quarter GDP on Thursday, which investors should also pay attention to.
