FX.co ★ New Zealand Dollar Weakens

On Wednesday, the New Zealand dollar slightly declined to approximately $0.603 as market participants assessed the latest shifts in US trade policy. Investor sentiment was shaped by the announcement that US and Chinese negotiators had established a framework to renew their trade truce—first reached last month—and address China's export limitations on rare earth minerals and magnets after two days of intensive discussions in London. Nevertheless, market enthusiasm was dampened by a decision from a US federal appeals court that permits President Donald Trump to continue implementing his global tariffs for the time being. Despite this downturn, the Kiwi dollar remained close to its eight-month high, achieved last week, bolstered by the anticipation that the Reserve Bank of New Zealand is nearing the conclusion of its rate-cutting measures. Current market predictions suggest that a rate hold is expected in the July meeting, with a potential final rate cut in August.