FX.co ★ New Zealand Dollar Steadies

The New Zealand dollar stabilized at approximately $0.60 on Wednesday, following a 0.6% decline in the prior session. Investor focus remains on the persistent tariff uncertainty and its prospective effects on the global economy, in light of U.S. President Trump’s latest indication that tariffs on steel and aluminum imports will be doubled, a change set to take effect today. Additionally, markets are keenly anticipating a potential meeting between President Trump and Chinese President Xi Jinping later this week. Given China’s status as New Zealand’s leading trading partner, any developments in the trade relations between China and the U.S. could substantially influence the New Zealand dollar. On the domestic front, the Reserve Bank of New Zealand has recently reduced its official cash rate, though the action in May suggests the easing cycle might be nearing its conclusion. Market expectations now lean towards the RBNZ maintaining steady rates at its July meeting, with a 70% probability assigned to a rate cut occurring in August, which could potentially signify the final adjustment of the current easing cycle.