FX.co ★ Kiwi Dollar Extends Winning Streak

The New Zealand dollar appreciated to approximately $0.590 on Wednesday, marking its seventh consecutive day of gains and approaching its highest point since early December 2024. This persistent upward trend reflects an enhancement in global risk sentiment following signals from Trump regarding a potential delay in imposing auto tariffs, alongside the temporary suspension of levies on selected tech products. Nonetheless, caution persists as the U.S. Commerce Department has initiated national security investigations into semiconductor and pharmaceutical imports, potentially setting the stage for the introduction of new tariffs. Additional strength for the kiwi was derived from economic data out of China that exceeded expectations, given that China is New Zealand’s largest trading partner. Domestically, the market's attention is now directed towards Thursday’s publication of first-quarter Consumer Price Index (CPI) data, anticipated to reveal a slight increase in annual inflation to 2.3% from 2.2% in the previous quarter. Last week, the Reserve Bank of New Zealand reduced its interest rates by 25 basis points to 3.5%, and investors are currently predicting further monetary easing to 2.75% by the autumn.