FX.co ★ New Zealand Dollar Edges Higher

On Thursday, the New Zealand dollar advanced to approximately $0.594, fueled by heightened optimism surrounding a potential trade agreement between the United States and China. Reports suggested that China has discreetly developed a list of U.S. products that will be exempt from its 125% tariffs in an effort to ease trade tensions without public concessions. Moreover, China's state-run media outlet, China Central Television, noted that the U.S. has been engaging with Beijing through various diplomatic channels. Domestically, however, the anticipation of further monetary policy easing by the Reserve Bank of New Zealand exerted downward pressure on the currency. Market participants are strongly anticipating a 25 basis points reduction in rates at the central bank's upcoming meeting this month, with expectations that rates will reach a low of 2.75% by October. Additionally, recent economic data revealed a decline in New Zealand's business confidence in April, instigated by concerns over U.S. tariffs.