FX.co ★ Kiwi Dollar Climbs for 5th Session

The New Zealand dollar advanced to approximately $0.584 on Monday, marking its fifth consecutive session of gains and approaching its highest point since December of last year. This upward movement was supported by a weakened US dollar and an increased appetite for risk in the market. In a recent development, the United States has temporarily exempted consumer electronics, many of which are manufactured in China, from tariffs. However, both President Trump and Commerce Secretary Lutnick suggested on Sunday that this exemption might be short-lived. President Trump also mentioned plans to announce the tariff rates on semiconductors this week, with the possibility of offering flexibility for certain companies. The ongoing uncertainty surrounding tariffs continues to raise concerns about potential wider economic impacts, especially affecting the US and exerting additional pressure on the US dollar. On the domestic front, recent survey data revealed that New Zealand's services sector experienced contraction for the second month in a row, alongside a decline in card spending. These factors contribute to the signs of a weakening economic landscape, as emphasized by the Reserve Bank of New Zealand (RBNZ) following last week's interest rate reduction to 3.5%.