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.
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