FX.co ★ Kiwi Rises After Two-Day Decline

The New Zealand dollar climbed to approximately $0.598 on Tuesday, recovering some losses from a recent two-day decline and bouncing back slightly from a three-week low. This movement was amid investors' continued evaluation of ongoing global trade uncertainties. In recent developments, President Donald Trump expressed willingness to restart trade discussions with the European Union and other major partners, yet warned of implementing 100% secondary tariffs on Russia if a peace agreement with Ukraine is not achieved within the next 50 days. In response, the EU cautioned of potential retaliatory measures to counter the US's 30% tariffs. Additionally, recent Chinese economic data showed that both Q2 GDP and June industrial production exceeded expectations, providing some optimism for New Zealand's export prospects due to its significant trading relationship with China. However, retail sales figures fell short of predictions. On the domestic front, the Reserve Bank of New Zealand (RBNZ) maintained its cash rate at 3.25% as anticipated but indicated a potential rate reduction in August. This dovish stance reflected ongoing weak economic data, particularly in the manufacturing and services sectors.