NZD/USD depreciates to near 0.6000 due to Trump's tariff threat on Chinese goods

• NZD/USD receives downward pressure due to the threat of Donald Trump's tariffs on Chinese goods.
• The NZD may appreciate as traders expect more stimulus measures from China as the NPC Standing Committee concluded its meeting.
• Fed Chair Jerome Powell emphasized that the central bank will continue evaluating economic data to guide future rate decisions.

NZD/USD depreciates as the New Zealand Dollar (NZD) receives downward pressure from the concerns about Donald Trump's proposals to raise tariffs on Chinese goods, given that New Zealand is a close trading partner to China. The NZD/USD pair trades around 0.6010 during the Asian session on Friday.

However, investors are hopeful about potential stimulus measures from China as the National People's Congress Standing Committee concluded its five-day meeting. Any positive change in the Chinese economy could positively impact the New Zealand markets.

The slight improvement in the US Treasury yields provides support for the Greenback. The US Dollar Index (DXY), which measures the value of the US Dollar against the other six major currencies, improves to near 104.50 with 2-year and 10-year yields on US Treasury bonds standing at 4.20% and 4.33%, respectively, at the time of writing.

The NZD/USD pair rose by over 1% on Thursday after the Federal Reserve announced a 25 basis point cut to its benchmark overnight rate, setting a new target range of 4.50%-4.75% at its November meeting.

Federal Reserve Chair Jerome Powell highlighted that the US central bank will continue to monitor economic data to guide the "pace and destination" of future rate adjustments, noting that inflation is gradually easing toward the Fed's 2% target. Investors are now focused on the upcoming preliminary US Michigan Consumer Sentiment report, due on Friday.