FX.co ★ New Zealand Dollar Extend Losses

On Thursday, the New Zealand dollar fell to approximately $0.601, marking its second day of losses. The downtrend was largely influenced by declining equity markets, which dampened risk appetite and prevented the currency from capitalizing on a generally weaker US dollar. Contributing to the cautious atmosphere were remarks from President Trump, who announced plans to disclose tariff rates to trading partners within the next two weeks, pending a July 9 deadline for reinstating higher tariffs on numerous countries. Despite this, the Kiwi experienced some support from positive news regarding a US-China agreement to revive a delicate trade truce during discussions in London. This development is crucial for New Zealand, as China stands as its largest trading partner. Domestically, the currency's value was also buoyed by forecasts that the Reserve Bank of New Zealand is nearing the conclusion of its rate-cutting cycle. Current market expectations anticipate no changes at the July meeting, with the potential for one final rate cut in August.