FX.co ★ Kiwi Dollar Remains Under Pressure

The New Zealand dollar continued its slump on Monday, reaching approximately $0.573, its lowest point in a week. The currency remains under pressure due to anxieties surrounding the imminent April 2 deadline for reciprocal tariffs imposed by the United States, which could adversely affect New Zealand's export-driven economy. However, there is some cautious optimism as President Trump hinted at potential "flexibility" in the tariff implementation, and recent reports suggest that the measures might be less comprehensive than previously thought, possibly sparing certain sectors from the full brunt. Domestically, data released last week confirmed that New Zealand's economy has emerged from recession, yet there is still an expectation for further rate cuts from the Reserve Bank of New Zealand (RBNZ) within the current year. In its last meeting, the RBNZ indicated plans for 25 basis point cuts in both April and May, with a third cut being a possibility later on. Additionally, the New Zealand dollar could gain some support from anticipated economic stimulus in China, aimed at increasing consumption, given that China is a pivotal trading partner for New Zealand.