New Zealand reported a year-on-year increase in credit card spending of 1.3% for January, an improvement from the previous decline of 1.3%.

The New Zealand dollar is rising against various currencies today, including the Australian dollar, euro, Swiss franc, British pound, and Canadian dollar.

Currently, the NZD/USD exchange rate is not influenced by local data but rather by the weakness of the US dollar. The USD/JPY rate remains above 149.00, despite a brief drop below this level.

This uptick in credit card spending suggests a slight boost in consumer activity compared to last year, a reversal from the decline previously seen. Household financial behaviour appears to be shifting, and while the increase is not particularly large, it indicates that spending is moving in a more positive direction.

The New Zealand dollar is gaining value across multiple pairs, showing broad strength against the Australian dollar, euro, Swiss franc, British pound, and Canadian dollar. This reflects a mix of domestic conditions and external influences, but what stands out is the movement of NZD/USD. The pair’s rise is not coming from local data or domestic drivers but rather from a weaker US dollar. This distinction is worth noting, especially for those who track the relationship between economic indicators and currency movements.

Meanwhile, USD/JPY is still holding above 149.00, though it briefly slipped beneath this mark. That momentary dip suggests some selling pressure, but it was not enough to take it lower for a sustained period. Considering past trends, it’s worth watching whether this level continues to hold or if a deeper pullback develops over time.

Understanding these shifts is more than just recognising the numbers. It’s about seeing where the pressure is coming from and how the reactions play out across different assets. The New Zealand dollar’s current strength does not appear to be driven by domestic factors, which means external conditions are having a greater say in its performance. Given that, closely watching broader currency dynamics may offer a more accurate view of where movements are heading.

As for USD/JPY, keeping an eye on how it behaves near this level is essential. If it manages to stay above 149.00, that could reinforce stability, but a decisive move lower might suggest otherwise. Watching how other assets respond could provide further confirmation. The next few weeks will likely offer more clarity, particularly as new economic data emerges and external conditions develop further.