NZD/USD extends gains above 0.6060 on hopes of a Sino-US trade deal

• The New Zealand Dollar appreciates ahead of the US-China meeting in London.
• Hopes of a trade deal are supporting risk-related currencies on Monday.
• The US Dollar is retracing its post-NFP rallies.

The risk-sensitive New Zealand Dollar is outperforming all its peers on Monday, fuelled by hopes that the US-China talks may render an agreement to bring some clarity to the global trade scenario. The NZD7USD has rallied almost 0.7%, nearing year-to-date highs at 0.6080.

Representatives from the US and China are meeting in London later today, aiming to ease recent tensions and find common ground to normalise their trade relationships. A positive tweet from US President Trump over the weekend has boosted hopes of some fruitful outcome, which is fuelling demand for the China proxies NZD and AUD.

The US Dollar is giving post-payrolls gains away

The Greenback, on the other hand, has given away most of the ground taken on Friday, as the enthusiasm of the stronger-than-expected US Nonfarm Payrolls report eased.

Friday's data revealed that the US economy created 139,000 new jobs in May, beating expectations of a 130,000 reading. Apart from that, unemployment remained unchanged at 4.2% with wage inflation rising at a steady 3.9% yearly pace against expectations of a slowdown to 3.7%.

These numbers eased concerns of an immediate recession in the US, triggered by an array of downbeat releases earlier in the week, and endorsed the Federal Reserve's hawkish stance. The US Dollar rallied across the board following the data.