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NZD/USD Struggles Amid Geopolitical Tensions and US Inflation

1/10/2026

37 3 Full Breakdown

Summary

Story summary

The NZD/USD trades under selling pressure below mid-0.5700s as traders await the US Nonfarm Payrolls report.
China's CPI rose 0.8% in December, with PPI down 1.9% year on year.
Geopolitical tensions underpin the US Dollar, limiting the NZD's potential gains.
US inflation is projected to rise due to tariffs, with PCE at 2.7% in 2026.
The Fed's rate decisions will be influenced by these indicators and rising job-market concerns.

History

Historical Context

The US-China Trade War began in January 2018 when President Trump imposed tariffs on Chinese goods, aiming to address unfair trade practices. By late 2019, tariffs on American imports had risen to 20.7%, contributing to economic slowdowns in both nations. The conflict has reshaped global trade dynamics, prompting companies to relocate supply chains, with Vietnam benefiting significantly from these shifts.

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Story summary

The NZD/USD trades under selling pressure below mid-0.5700s as traders await the US Nonfarm Payrolls report.
China's CPI rose 0.8% in December, with PPI down 1.9% year on year.
Geopolitical tensions underpin the US Dollar, limiting the NZD's potential gains.
US inflation is projected to rise due to tariffs, with PCE at 2.7% in 2026.
The Fed's rate decisions will be influenced by these indicators and rising job-market concerns.

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