FX.co ★ New Zealand Dollar Holds Decline

The New Zealand dollar stabilized near $0.597 on Tuesday after experiencing three successive sessions of decline, pressured by a robust US dollar. This strength in the greenback emerged in the aftermath of a new trade agreement between the US and the EU, which enforces a 15% tariff on most European goods. Investors are keeping a keen eye on the continuing trade negotiations between the US and China, amid predictions of another 90-day extension to their truce—the world's two largest economies are engaged in. A positive resolution could bolster the Kiwi, reflecting New Zealand's significant trade connections with China, its primary export partner. Attention is also directed towards the forthcoming US Federal Reserve policy meeting, where the central bank is widely expected to maintain steady interest rates. Domestically, there is currently around a 75% market expectation that the Reserve Bank of New Zealand will lower its 3.25% cash rate by 25 basis points at its upcoming meeting in August.