FX.co ★ New Zealand Dollar Strengthens

The New Zealand dollar appreciated to approximately $0.598 on Monday, continuing its upward momentum from the prior session. This increase was bolstered by sustained weakness in the US dollar as market participants awaited clearer indications regarding US-China trade negotiations. Over the weekend, President Trump expressed his belief that China is inclined towards reaching a deal, though he did not provide specific details. In contrast, Beijing indicated its willingness to negotiate but maintained that the US should first lift all unilateral tariffs. On the domestic front, attention shifted to the forthcoming unemployment figures, which are anticipated to reveal an uptick in the jobless rate. Such an outcome could reinforce the Reserve Bank's case for further monetary policy easing. The markets have fully factored in a 25 basis point rate reduction during the central bank's meeting later this month, with interest rates expected to reach a low point of 2.75% by October.