FX.co ★ New Zealand Dollar Eases

The New Zealand dollar declined to around $0.575 on Friday after reaching a four-month peak the day before. This earlier rise was influenced by a broader weakening of the U.S. dollar amid concerns that President Donald Trump's extensive tariffs could trigger an economic downturn. Investors are now focusing on the U.S. non-farm payrolls report and a speech by Federal Reserve Chair Jerome Powell, both slated for later today. These events are expected to provide key insights into the U.S. economic outlook and interest rate trends. On the domestic front, the New Zealand currency is under pressure as the Reserve Bank of New Zealand is anticipated to implement a 25 basis point rate cut in its upcoming meeting. In addition, many economists predict another 25 basis point reduction in May, followed by a third cut in the third quarter, potentially lowering the rate to 3.00% by the end of September. Despite the decline on Friday, the New Zealand dollar is still poised for its first weekly gain in three weeks.