NZD/USD strengthens to near 0.5950 on weaker US Dollar, eyes on US-China trade talks

• NZD/USD trades in positive territory around 0.5950 in Wednesday's Asian session. 
• Persistent tariff uncertainty and fears of a US economic slowdown weigh on the US Dollar. 
• Traders expect the RBNZ to cut its OCR by 25 bps in May. 

The NZD/USD pair strengthens to near 0.5950 during the Asian trading hours on Thursday, bolstered by the weakening of the US Dollar (USD). Traders brace for the US weekly Initial Jobless Claims, Chicago Fed National Activity Index, Durable Goods Orders, and Existing Home Sales, which are due later on Thursday. 

US Treasury Secretary Scott Bessent said on Tuesday that the ongoing tariff showdown against China is unsustainable, and he expects a "de-escalation" in the trade war between the world's two largest economies in the near future. Late Wednesday, US President Donald Trump's administration stated that it has spoken to 90 countries regarding tariffs already. 

The Trump administration noted that the US will set tariffs for China over the next two to three weeks, and it depends on China how soon tariffs can come down. The uncertainty surrounding Trump's trade policies raises concerns about the economic slowdown in the US and drags the Greenback lower. 

On the Kiwi front, the rising expectation that the Reserve Bank of New Zealand (RBNZ) will lower its Official Cash Rate (OCR) at the May meeting might cap the upside for the pair. The markets fully expect the RBNZ to cut its 3.5% OCR by 25 basis points (bps) in May, with a further reduction to 2.75% by year-end.