NZD: NZD/USD dips under 0.6000 post Business NZ PMI.
The Businesses in the NZ Manufacturing Activity for the month of April came at 48.9 it is well above the March month reading of 46.8 and it is well below the February month reading of 49.1. This is the 14th month contraction in the Business dull activity in the NZ economy due to higher rate surviving in the NZ, China is slowdown in the economy, China CPI data is anticipated as 0.10% in the April month due on Saturday this week.
NZDUSD has broken Descending channel in upside
The New Zealand Dollar/US Dollar (NZD/USD) pair, after a two-day uptrend, experienced a reversal, settling around 0.6020 during Friday’s Asian trading session. This shift occurred following the release of the Business NZ Performance of Manufacturing Index (PMI), which assesses business activity within New Zealand’s manufacturing sector.
Although the PMI data for April showed improvement, with a seasonally-adjusted figure of 48.9 compared to March’s 46.8, it remained below February’s 49.1. Despite the manufacturing sector remaining in contraction for 14 consecutive months, there are indications of gradual improvement.
In the upcoming session, market attention is directed towards the Chinese Consumer Price Index (CPI) data for April, with expectations of a 0.1% increase, a release that could impact New Zealand’s market due to the close economic ties between the two countries.
The US Dollar Index (DXY), which measures the performance of the US Dollar (USD) against six major currencies, is striving for a rebound, fueled by sentiments of the Federal Reserve (Fed) maintaining elevated interest rates for a prolonged period. However, the USD encountered resistance due to diminished US Treasury yields, influenced by disappointing US Initial Jobless Claims data released on Thursday.
According to the US Bureau of Labor Statistics (BLS), the number of individuals filing for unemployment benefits surpassed expectations, with Initial Jobless Claims for the week ending May 3 rising to 231,000, exceeding estimates of 210,000 and surpassing the previous week’s reading of 209,000.
Looking ahead, market participants await the preliminary Michigan Consumer Sentiment Index for May, with forecasts indicating a slight decline. This index, which surveys consumer sentiment in the US, encompasses three primary areas: personal finances, business conditions, and buying conditions.
NZD: NZ manufacturing shows improvement amid contraction
In April, the Business NZ Manufacturing Activity Index registered at 48.9, showing an increase from the March figure of 46.8 but remaining below February’s 49.1. This marks the 14th consecutive month of contraction in business activity within the New Zealand economy, largely influenced by the persistent high interest rates in New Zealand and the slowdown in China’s economy. Anticipation surrounds the release of China’s Consumer Price Index (CPI) data for April, expected to be 0.10%, scheduled for this Saturday.
EURNZD is moving in box pattern and market has reached support area of the pattern
According to a survey released on Friday, manufacturing activity in New Zealand saw an uptick in April, although it continues to operate within a contractionary phase. The Bank of New Zealand-Business NZ’s seasonally adjusted Performance of Manufacturing Index (PMI) climbed to 48.9 in April, up from 46.8 in the preceding month. A PMI reading above 50 signifies expansion, while a reading below indicates contraction.
NZD: Business NZ Manufacturing PMI for April: 48.9 vs. Previous 47.1
The New Zealand Manufacturing Activity Index for April recorded a reading of 48.9, reflecting a notable improvement from March’s 46.8 but still trailing behind February’s 49.1. This sustained contraction, spanning 14 consecutive months, is attributed to various factors including New Zealand’s high interest rates and the deceleration of economic growth in China. Eyes are now on the upcoming release of China’s April Consumer Price Index (CPI), anticipated to be at 0.10%, slated for this Saturday.
The manufacturing sector of New Zealand has experienced a continuous contraction over the span of 14 consecutive months, as noted by BusinessNZ. Comments from BusinessNZ indicated a prevailing theme of insufficient sales and orders within the sector, reflecting the challenges faced by the struggling economy.
AUDNZD is moving in Ascending channel and market has reached higher low area of the channel
BNZ remarked that the Purchasing Managers’ Index (PMI) for the year to date remains consistent with manufacturing GDP lagging behind the levels of the previous year. However, April’s data presented a slightly more nuanced picture, with details showing a mixture of strengths and weaknesses, rather than a uniform pattern of weakness observed in recent months.
Despite this, the impact on the NZD/USD exchange rate was minimal, as the data point typically does not result in immediate movement for the New Zealand dollar.
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