NZD/USD holds US-Iran war-driven losses near 0.5950, US ISM PMI data eyed

ARTICOLI POPOLARI

The NZD/USD pair holds early losses driven by the ongoing war between the United States (US) and Iran, trades 0.75% lower to near 0.5950 during the European trading session on Monday.

NZD/USD continues to hold early losses amid fears of US-Iran war escalation.
Middle East tensions have increased the safe-haven demand of the US Dollar.
Investors await the US ISM Manufacturing PMI data for February.

The NZD/USD pair holds early losses driven by the ongoing war between the United States (US) and Iran, trades 0.75% lower to near 0.5950 during the European trading session on Monday. The Kiwi pair remains under pressure as demand for safe-haven assets strengthens further amid fear of further escalation in Middle East tensions.

New Zealand Dollar Price Today

The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the weakest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.62%	0.63%	0.42%	0.02%	0.31%	0.54%	0.35%
EUR	-0.62%		0.02%	-0.18%	-0.60%	-0.30%	-0.07%	-0.26%
GBP	-0.63%	-0.02%		-0.23%	-0.62%	-0.32%	-0.10%	-0.28%
JPY	-0.42%	0.18%	0.23%		-0.39%	-0.10%	0.13%	-0.05%
CAD	-0.02%	0.60%	0.62%	0.39%		0.30%	0.52%	0.34%
AUD	-0.31%	0.30%	0.32%	0.10%	-0.30%		0.23%	0.05%
NZD	-0.54%	0.07%	0.10%	-0.13%	-0.52%	-0.23%		-0.19%
CHF	-0.35%	0.26%	0.28%	0.05%	-0.34%	-0.05%	0.19%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).

As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.7% higher to near 98.40.

During the day, Iran’s security chief Ali Larijani rejected any intentions of negotiations with the US, in a way increasing the risk premium of safe-haven assets.

Over the weekend, the US and Israel launched a series of airstrikes against Tehran and killed the Supreme Leader Ayatollah Ali Khamenei. In retaliation, Iran also launched several missiles and drones on Israeli territory and several US military bases in the Middle East.

On the domestic front, the major trigger for the US Dollar will be the US Nonfarm Payrolls (NFP) data for February, which will be released on Friday. In Monday’s session, investors will focus on the US ISM Manufacturing PMI data for February, which will be published at 15:00 GMT. The Manufacturing PMI is expected to come in lower at 52.3 from 52.6 in January.

In the Kiwi region, hawkish Reserve Bank of New Zealand (RBNZ) monetary policy expectations have trimmed as Governor Anna Breman said in the February monetary policy announcement that the economy could continue to grow without triggering inflationary pressures.

(This story was corrected on March 2 at 12:19 GMT to say that the ongoing war is between the US and Iran, not between the US and Israel.)

Economic Indicator

ISM Manufacturing PMI

The Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The indicator is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. Survey responses reflect the change, if any, in the current month compared to the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). A reading below 50 signals that factory activity is generally declining, which is seen as bearish for USD.

Why it matters to traders?

The Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) provides a reliable outlook on the state of the US manufacturing sector. A reading above 50 suggests that the business activity expanded during the survey period and vice versa. PMIs are considered to be leading indicators and could signal a shift in the economic cycle. Stronger-than-expected prints usually have a positive impact on the USD. In addition to the headline PMI, the Employment Index and the Prices Paid Index numbers are watched closely as they shine a light on the labour market and inflation.

FXStreet

Oltre un milione di utenti si affida a FXStreet per dati di mercato in tempo reale, strumenti di charting, approfondimenti di esperti e notizie Forex. Il loro calendario economico completo e i webinar formativi aiutano i trader a rimanere informati e a prendere decisioni ponderate. FXStreet conta circa 60 professionisti tra la sede di Barcellona e diverse regioni globali.

Item 1 of 0