FX.co ★ New Zealand Dollar Halts Gains

On Tuesday, the New Zealand dollar steadied at approximately $0.597, pausing its two-day rise. This stability came as the US dollar strengthened and private reports pointed to weaker growth in China's PMI figures. China's services sector fell short of expectations, growing at its slowest rate since last September, signaling the detrimental impact of US tariffs. This development put pressure on the Kiwi, given China's status as New Zealand's largest trading partner. Concurrently, focus turned towards the forthcoming domestic unemployment data, anticipated to reflect an increase in the jobless rate. Such an outcome could bolster the argument for additional policy easing by the Reserve Bank. The financial markets have already factored in a 75% probability of a 25-basis-point rate cut at this month's central bank meeting, with projections of three further cuts over the course of the year.