FX.co ★ New Zealand Dollar Heads for 3rd Weekly Gain

The New Zealand dollar slipped to approximately $0.598 on Friday, yet it stayed poised for its third straight weekly gain, buoyed by optimism surrounding U.S.-China trade discussions. On Thursday, President Donald Trump stated that negotiations between Washington and Beijing are underway, challenging China's assertions that no talks had been conducted. Earlier in the week, Trump alluded to potentially softening his tough trade approach with China—New Zealand's primary trade partner—hinting at a notable reduction in the stringent tariffs placed on Chinese goods. On the domestic front, expectations for further monetary easing from the Reserve Bank of New Zealand continue to exert pressure on the currency. The markets are fully anticipating a 25 basis point rate cut at the RBNZ's May meeting, with predictions suggesting rates may bottom out at 2.75% by the year's end.