FX.co ★ New Zealand Dollar Weakens

The New Zealand dollar depreciated to approximately $0.603 on Friday, reversing the gains made in the prior session as the US dollar regained stability in anticipation of the nonfarm payrolls report. Market participants also continued to evaluate the implications of a recent phone conversation between US President Donald Trump and Chinese President Xi Jinping, during which they agreed to resume trade negotiations, although no specific details were provided. Domestically, the Reserve Bank of New Zealand lowered interest rates by 25 basis points to 3.25% last week. However, the decision from May indicates that the cycle of monetary easing might be approaching its conclusion. Market projections now suggest that the RBNZ is likely to maintain steady rates in July, with approximately a 70% probability of a rate cut in August, which could mark the final adjustment in the current easing phase. For the week, the New Zealand dollar is poised to achieve a gain of over 1%.