FX.co ★ New Zealand Dollar Rebounds

The New Zealand dollar experienced an uptick, reaching approximately $0.592 on Friday, following a three-day decline. This recovery is attributed to improved market sentiment due to emerging signs of reduced trade tensions, alleviating some pressure on the export-reliant currency. Notably, China has indicated a readiness to engage in trade discussions with the United States. This development follows President Trump's remarks suggesting potential trade deals with countries like India, Japan, and South Korea, and expressing a strong possibility of finalizing an agreement with China. Despite these international developments, the New Zealand dollar continues to face domestic challenges. There is an increasing expectation of further monetary policy easing by the Reserve Bank of New Zealand. The market has fully anticipated a 25 basis point reduction in interest rates at the central bank’s upcoming meeting, with forecasts suggesting rates might bottom out at 2.75% by October. For the week, the currency is on track for a modest loss.