- NZD/USD hovers near the five-month high of 0.5979, reached on Thursday.
- Investors remain focused on US trade policy developments, particularly due to New Zealand’s significant export relationship with China.
- The NZD stays rangebound as expectations of further monetary easing by the Reserve Bank of New Zealand.
NZD/USD is trading subdued around 0.5970 during Friday’s Asian session, holding near Thursday’s five-month high of 0.5979 after seven consecutive days of gains. The pair could see further upside as the US Dollar (USD) weakens amid rising concerns over the economic fallout from US tariffs. However, trading volumes are likely to remain thin due to the Good Friday holiday.
Investors are keeping a close eye on developments in US trade policy, especially given New Zealand’s strong export ties with China, its largest trading partner. On Thursday, US President Donald Trump noted that China had made several overtures, adding, “I don’t want to go higher on China tariffs. If China tariffs go higher, people won’t buy.” He expressed optimism that a trade deal could be reached within three to four weeks.
On the economic data front, US Initial Jobless Claims fell to 215,000 for the week ending April 12, beating expectations and down from a revised 224,000. However, Continuing Claims rose by 41,000 to 1.885 million for the week ending April 5.
The New Zealand Dollar (NZD) remains rangebound as expectations of further easing by the Reserve Bank of New Zealand (RBNZ) weigh on sentiment. With inflation still within the RBNZ’s target range, markets are pricing in a rate cut in May and anticipate the Official Cash Rate to fall to 2.75% by year-end.
