New Zealand Manufacturing Sector Growth

New Zealand’s Business NZ PMI rose from 53.2 to 53.9 in April, indicating growth in the manufacturing sector. The AUD/USD remains above 0.6400 as the US Dollar weakens due to declining confidence in US trade deals. Focus is now on upcoming US data and comments from the Federal Reserve. The USD/JPY has climbed back towards 145.50, despite weak Q1 GDP figures from Japan. The different monetary policies of the BoJ and Fed also play a role. Markets expect the BoJ to raise rates again in 2025, despite current economic data. Gold prices are having a hard time following a recent recovery from a month-low near the 200-period SMA. A temporary US-China trade truce has eased pressures on the global market, affecting gold.

Impact of UK Economic Growth

Bitcoin and Solana have dropped in value as FTX prepares to start the next phase of creditor distributions on May 30. These events continue to influence the cryptocurrency market. The UK economy showed surprising growth in the first quarter, following stagnation towards the end of last year. However, concerns remain about the accuracy of this data and what it shows about the true economic situation. There is a list of top brokers for trading EUR/USD, known for their competitive spreads and fast execution. This list is useful for both beginners and experienced traders, making it suitable for various trading strategies. New Zealand’s Business NZ PMI increase from 53.2 to 53.9 suggests that manufacturing is expanding. A PMI above 50 indicates improving output and that both domestic and export demand may be strengthening. This could lead to more opportunities in NZD-related instruments, particularly where rates and industrial output are significant. In Australia, the AUD/USD holding above 0.6400 highlights the continuing weakness of the US Dollar. This seems driven by global factors rather than local risks. With optimism over US trade talks fading, the Dollar is now more responsive to signals from the Federal Reserve and harder economic data. Should upcoming US numbers, especially on inflation and jobs, fall short of expectations, AUD pairs might rise, though likely with some ups and downs. Currently, US traders appear hesitant, uncertain that the Fed can maintain its strong rhetoric without supporting data. The USD/JPY’s rise towards 145.50 comes as Japan’s Q1 GDP shrank, which lowers domestic confidence but does not deter the Bank of Japan from its current strategy. There remains a significant gap between US and Japanese monetary policy, but markets are starting to consider that the BoJ may gradually move towards raising rates. With investors anticipating a potential hike in 2025, this stabilizes rate-sensitive positions, though any strong data or hawkish comments could quickly shift yen movements. It’s the pace of change, rather than direction, that keeps this currency pair active. Gold’s brief recovery from recent lows points to a broader trend: a decrease in demand for traditional safe havens during reduced tensions. The easing between the US and China, although tentative, has lessened gold’s appeal for now. Nevertheless, prices hovering around the 200-period moving average indicate that traders are awaiting a stronger impetus. If inflation rises again or another shock occurs, interest could rapidly return. Until then, prices will likely remain within a narrow range. In the crypto market, both Bitcoin and Solana dropped as FTX announced plans for a new round of creditor repayments this month. These time-sensitive developments often heighten market anxieties, particularly in an already volatile sector facing regulatory uncertainties. Smaller altcoins are also reacting strongly as traders prepare for potential capital withdrawals related to these repayments, adding more complexity to the overall sentiment. Meanwhile, the UK’s unexpected first-quarter growth after a six-month stall surprised many. However, concerns linger that long-term performance may be inaccurately reported. With constraints in data collection, it’s uncertain if this growth can continue without adjustments. From an interest rate perspective, this will influence how markets view the Bank of England’s policy, especially concerning wage and services inflation. The positioning around GBP may change quickly due to revisions in data. Finally, recent updates on broker rankings for EUR/USD trading focus on execution speed and spread reliability. Algorithmic traders and those using short-timeframe setups could see significant benefits when latency and slippage affect strategy returns. For those looking for multi-day positions, the choice of broker may influence results less, but it still affects rollover costs and fills during volatile periods. This array of cross-market drivers—including activity in the Asia Pacific, metals, cryptocurrencies, and key economic releases—requires flexible strategies. As we approach the end of the quarter, some stories might fade, while others, such as central bank movements and data discrepancies, are likely to create more directional opportunities. Create your live VT Markets account and start trading now.

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