NZD/USD falls to near 0.5900 following a 90-day pause in US-China tariff escalation
NZD/USD weakens after a 90-day pause in tariff escalation and a significant 115% reciprocal tariff reduction.
US Trade Representative Jamieson Greer admitted the embargo strategy was unsustainable and emphasized both countries’ commitment to the pause.
The New Zealand Dollar continues to face pressure amid expectations of further monetary easing by the RBNZ.
NZD/USD remains under pressure, trading near 0.5900 during early European hours on Monday, despite an improved global trade mood following positive developments in US-China trade talks. The US Dollar (USD) strengthened after the release of a joint statement from the high-level trade negotiations held over the weekend in Geneva, Switzerland. The statement confirmed that the US will suspend 24 percentage points of its tariff rate on Chinese goods for an initial 90-day period.
At a scheduled briefing, US Treasury Secretary Scott Bessent emphasized the significance of the agreement, highlighting a 90-day pause in tariff escalation and a substantial 115% reciprocal reduction in tariffs. Bessent noted that both sides showed strong personal rapport and remained focused on national interests.
US Trade Representative Jamieson Greer echoed similar sentiments, underscoring the mutual respect and understanding between both delegations. Greer acknowledged that the embargo approach was unsustainable and reaffirmed both nations’ commitment to the 90-day pause, though he stated that the fentanyl issue remains unresolved.
Despite the positive trade backdrop, the New Zealand Dollar (NZD) remains weighed down by expectations of further monetary easing by the Reserve Bank of New Zealand (RBNZ). Recent domestic data pointed to weakening labor market conditions and slowing wage growth, strengthening the case for a 25 basis point rate cut this month. Markets are also pricing in additional easing, with the cash rate expected to fall to 3% by the end of the year and three further cuts anticipated in 2025.
New Zealand Dollar PRICE Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the weakest against the US Dollar.
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
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