NZD/USD Gains Amid Strong Retail Sales and China’s Policy Outlook

The NZD rose in value compared to the USD on Monday of this week; during this period the NZ dollar relative to the USD remained stable at a bordering rate of 0.5750 USD for 1 NZD.

This increase in value was largely influenced by retail sales figures from New Zealand and favorable economic indicators emanating from China which contributed to shaping this movement in currency exchange rates between NZ and US dollars.

Retail sales in New Zealand surged by 0.3% in the quarter of 2025, marking the first increase in three years. This growth surpassed analysts’ predictions of 0.2%. Consumer spending also exceeded expectations, indicating a positive outlook.

China’s recent policy update emphasized its dedication to improving the economy and supporting areas—a move that raised optimism for economic support measures and could benefit New Zealand’s economy positively as China stands as New Zealand’s primary trading ally; henceforth influencing the demand for NZ dollars directly.

The NZ Dollar gained strength due to a decline in the value of the US Dollars position in the market as indicated by the US Dollar Index (DXY) which fell below 106.50 following uninspiring updates that pointed towards a dip in February’s Services Purchasing Managers’ Index (PMl) settling at 49.7 indicate a slowdown in activity.

Nevertheless, there are still concerns as President Donald Trump of the United States has issued a directive to the Committee on Foreign Investment in the United States to enhance oversight of investments in critical sectors. This action might introduce unpredictability into trade partnerships and impact market confidence.

Despite these worries, the NZ Dollar against the US Dollar remains optimistic. Positive local data and growing faith in China’s strategies lend a helping hand. Traders will watch closely for US reports and policy choices to gauge market shifts ahead.