FX.co ★ New Zealand Dollar Stabilizes

The New Zealand dollar stabilized at approximately $0.59 on Thursday, following a 0.6% decline in the previous session. This stabilization occurred as investors anticipated further insights into potential trade agreements after the easing of tensions between the United States and China. Notably, the two nations announced a 90-day halt on most tariffs imposed on each other's goods since early April, marking a significant development for New Zealand, given China's position as its primary trading partner. Domestically, expectations of further interest rate cuts by the Reserve Bank of New Zealand continue to exert pressure on the currency. It is widely anticipated that the central bank will reduce its official cash rate by 25 basis points at its upcoming meeting later this month, in response to weaker domestic growth prospects. In terms of economic data, food prices in New Zealand saw a 3.7% year-on-year increase in April, marking the fastest rate of growth in fifteen months, following a 3.5% rise in March.