Ella 
NZD/USD halted two days of losses during Friday’s Asian session, trading around 0.5890. The pair gained after the Reserve Bank of New Zealand (RBNZ) released its inflation forecasts for the second quarter of 2025.
Expectations rose month-on-month to 2.29%, up from 2.06% previously. The indicator reflects business managers’ forecasts for annual CPI over the next two years. Also, the New Zealand Business Purchasing Managers’ Index (PMI) rose to 53.9 in April, compared to a previous reading of 53.2.
The risk-sensitive New Zealand dollar (NZD) benefited from easing global trade tensions. A preliminary deal was reached between the United States and China, which will see the US reduce tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on US imports from 125% to 10%. Market sentiment was also boosted by renewed optimism about a potential US-Iran nuclear deal.
Meanwhile, recent US economic data has presented a mixed picture – highlighting the economy’s inherent resilience, but also signaling weakening growth momentum. This has kept the dollar trading in a tight range.
In April, the US Producer Price Index (PPI) rose 2.4% year-on-year, down from a 2.7% increase in March and below market expectations of 2.5%. The core PPI (excluding food and energy) rose 3.1% year-on-year, down from 4% previously. On a monthly basis, the headline PPI fell 0.5%, while the core PPI fell 0.4%. Initial jobless claims as of May 10 remained at 229,000, in line with the previous week’s revised data and market expectations.
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