NZD/USD struggles to return above 0.6000 with the US Dollar firmer on cautious markets

Source Fxstreet
  • The New Zealand Dollar extends losses amid the risk-off mood, following the new tariff threats from the US.
  • Growing trade uncertainty is supporting the US Dollar and weighing risk-sensitive assets such as the NZD.
  • Upbeat trade data from China eased pressure on the Kiwi earlier on Monday.

The New Zealand Dollar is trimming some losses in the early European session. Still, it remains trading lower for the second consecutive day, weighed by a risk-averse market sentiment after the new twist of Trump’s tariff saga.

The NZD USD is bouncing up from fresh three-week lows at 0.5975 hit during Monday’s Asian session, but it seems unable to return above the 0.6000 round level, which keeps the pair 0.25% below the daily opening levels.

The US President rattled markets over the weekend, announcing 30% tariffs on imports from the European Union and Mexico, higher than the 20% and 25% respective tariffs announced on April 2, “Liberation Day,” adding uncertainty to the global trade outlook. Risk-sensitive currencies, such as the Kiwi, are under pressure amid the cautious market mood.
guidance
The market reaction, however, has been tame. The targeted countries have refrained from announcing immediate retaliation and remain hopeful of reaching a deal before the April 1 deadline, which keeps risk aversion subdued.

Upbeat data from China is supporting the NZD

In the macroeconomic front, trade data from China, New Zealand’s principal partner, has provided some support to the NZD. China’s trade surplus widened beyond expectations, boosted by a sharp increase in exports on the back of a de-escalation of the trade war with the US.

These figures improve the expectations of China’s second quarter Gross Domestic Product, which is due to be released on Tuesday, and might provide some guidance to the NZD, in the absence of first-tier data from New Zealand this week.

Economic Indicator

Trade Balance USD

The Trade Balance released by the General Administration of Customs of the People’s Republic of China is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the CNY. As the Chinese economy has influence on the global economy, this economic indicator would have an impact on the Forex market. In general, a high reading is seen as positive (or bullish) CNY, while a low reading is seen as negative (or bearish) for the CNY.

Read more.

Last release: Mon Jul 14, 2025 03:00

Frequency: Monthly

Actual: $114.77B

Consensus: $109B

Previous: $103.22B

Source: National Bureau of Statistics of China

Economic Indicator

Imports (YoY)

Imports of goods and services, released by National Bureau Statistics of China, consist of transactions in goods and services (sales, barter, gifts or grants) from non-residents to residents.

Read more.

Last release: Mon Jul 14, 2025 03:00

Frequency: Monthly

Actual: 1.1%

Consensus: 1.3%

Previous: -3.4%

Source:

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Slides to $111K Ahead of PCE Inflation Data, Faces Monthly DeclineBitcoin experienced volatile trading on Friday, sliding close to $111,000 as investors awaited critical U.S.
Author  Mitrade
Aug 29, Fri
Bitcoin experienced volatile trading on Friday, sliding close to $111,000 as investors awaited critical U.S.
placeholder
Oil Prices Maintain Gains Amid Geopolitical Risks and Fed Rate Cut SpeculationOil prices held largely steady in Asian trading on Monday following notable weekly gains, supported by diminishing expectations of an immediate ceasefire in the Russia-Ukraine conflict and dovish cues from the U.S.
Author  Mitrade
Aug 27, Wed
Oil prices held largely steady in Asian trading on Monday following notable weekly gains, supported by diminishing expectations of an immediate ceasefire in the Russia-Ukraine conflict and dovish cues from the U.S.
placeholder
Markets Today: Nvidia Earnings, Indian Tariffs, French Political Risk in FocusU.S. stock futures edged higher Wednesday as investors awaited Nvidia’s closely watched earnings, while fresh U.S. tariffs on Indian imports and renewed political turmoil in France weighed on global sentiment.
Author  Mitrade
Aug 27, Wed
U.S. stock futures edged higher Wednesday as investors awaited Nvidia’s closely watched earnings, while fresh U.S. tariffs on Indian imports and renewed political turmoil in France weighed on global sentiment.
placeholder
Crypto Market Update: Bitcoin Rebounds Amid Fed Turmoil, Altcoins GainBitcoin edged higher Wednesday to $111,272 after hitting a seven-week low below $109,000, pressured by a major whale trade that liquidated 24,000 tokens. The cryptocurrency has now dropped more than 10% from its August peak above $124,000, as risk sentiment remains muted amid concerns over Federal Reserve independence.
Author  Mitrade
Aug 27, Wed
Bitcoin edged higher Wednesday to $111,272 after hitting a seven-week low below $109,000, pressured by a major whale trade that liquidated 24,000 tokens. The cryptocurrency has now dropped more than 10% from its August peak above $124,000, as risk sentiment remains muted amid concerns over Federal Reserve independence.
placeholder
Oil Prices Steady Ahead of U.S. Tariffs Impact on IndiaOil prices remained mostly unchanged on Wednesday following a sharp decline in the previous session, as markets awaited the imposition of hefty U.S. tariffs on India, the world’s third-largest crude importer.
Author  Mitrade
Aug 27, Wed
Oil prices remained mostly unchanged on Wednesday following a sharp decline in the previous session, as markets awaited the imposition of hefty U.S. tariffs on India, the world’s third-largest crude importer.
Related Instrument
goTop
quote