FX.co ★ New Zealand Dollar Declines

The New Zealand dollar declined to approximately $0.603 on Tuesday, retracting gains made during the previous session as the US dollar strengthened due to renewed optimism surrounding US-China trade negotiations. Although no substantial progress was achieved on the first day, investors remained optimistic. President Trump expressed confidence, stating the discussions "should go very well." Meanwhile, US officials suggested easing technology export restrictions if China agreed to relax limits on rare earth shipments, which are essential for the energy, defense, and technology sectors. Despite this, the New Zealand currency stayed near an eight-month high achieved last week, fueled by increasing speculation that the Reserve Bank of New Zealand might decelerate the pace of interest rate cuts, even amidst revised economic projections. The policy decision in May suggested that the easing cycle may be approaching its conclusion, with markets now anticipating the RBNZ to maintain rates in July and potentially execute a final cut in August.