Select Language

NZD/USD extends downside below 0.6050 as traders await details of tariff deals

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. NZD/USD extends downside below 0.6050 as traders await details of tariff deals

World FX news

search
Breaking news

NZD/USD extends downside below 0.6050 as traders await details of tariff deals

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
update 2025.07.07 11:43
NZD/USD extends downside below 0.6050 as traders await details of tariff deals

update 2025.07.07 11:43

  • NZD/USD loses momentum to near 0.6035 in Monday's Asian session. 
  • Trump said tariff letters to 12-15 countries were signed and are going out Monday. 
  • The New Zealand central bank is widely expected to pause the easing cycle on Wednesday. 

The NZD/USD pair extends the decline to around 0.6035 during the Asian trading hours on Monday. The New Zealand Dollar (NZD) weakens against the Greenback amid tariff uncertainty triggered by US President Donald Trump. The Reserve Bank of New Zealand (RBNZ) interest rate decision and the Federal Open Market Committee (FOMC) Minutes will be the highlights on Wednesday. 

The renewed tariff concerns lift the US Dollar (USD) and act as a headwind for the pair. Reuters reported over the weekend that US President Donald Trump had signed letters to 12 or 15 countries outlining the various tariff levels they would face on goods they export to the United States. I signed some letters, and they'll go out on Monday," said Trump.

Trump didn't say which countries would be targeted or what rates would be set. However, he said on Thursday that the rates in the letters would go into effect August 1 and warned some could be as high as 70%.

RBNZ Chief Economist Paul Conway to discuss tariffs on July 24. Investors will keep an eye on the developments surrounding the trade agreement. However, any signs of positive progress could provide some support to the China-proxy Kiwi, as China is a major trading partner of New Zealand. 

The RBNZ is expected to leave interest rates unchanged at the July meeting on Wednesday. According to the Reuters poll, the median forecast shows just one more 25 basis point (bps) reduction this year compared with two in a May survey. Financial market pricing sees less than a 20% odds that the RBNZ will cut its OCR in the coming week, but the possibility of an August cut is more than 70%. 

New Zealand Dollar FAQs

The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country's central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand's biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand's main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.

The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors' appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.

Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar's (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate.

The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called 'commodity currencies' such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.



 

 

Date

Created

 : 2025.07.07

Update

Last updated

 : 2025.07.07

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

Australian Dollar declines as Trump prepares to send tariff letters to trading partners

Next article

US President Trump warns of an additional 10% tariff on nations aligned with BRICS

prev

Most viewed

FX option expiries for Aug 4 NY cut

FX option expiries for Aug 4 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
update2025.08.04 14:47

AUD/JPY recovers further from multi-week low, climbs to 95.80 amid a broadly weaker JPY

The AUD/JPY cross attracts some buyers during the Asian session on Monday and reverses a part of Friday's slump to the 95.00 neighborhood, or a nearly four-week low. Spot prices climb to a fresh daily peak, around the 95.80 region in the last hour, and draw support from a combination of factors.
New
update2025.08.04 14:42

EUR/USD holds onto gains below 1.1600 as US Dollar trades cautiously

The EUR/USD pair clings to Friday's gains near 1.1570 during the late Asian session on Monday. The major currency pair trades firmly as the US Dollar (USD) has been pushed to the backfoot, following questions over the credibility of the United States (US) data agencies.
New
update2025.08.04 14:18

GBP/USD Price Forecast: Resistance appears at 1.3300 near nine-day EMA

The GBP/USD pair moves sideways after registering more than 0.5% gains in the previous day, trading around 1.3280 during the Asian hours on Monday. The bearish bias prevails as the daily chart's technical analysis suggests that the pair moves downwards within the descending channel pattern.
New
update2025.08.04 14:15

USD/CHF Price Forecast: Keep a bearish vibe, crucial support level emerges near 0.8000

The USD/CHF pair attracts some buyers to around 0.8050 during the early European session on Monday, bolstered by a firmer US Dollar (USD).
New
update2025.08.04 14:12

Gold price edges lower amid modest USD uptick; September Fed rate cut bets limit losses

Gold price (XAU/USD) pulls back from the $3,369 region, or over a one-week top touched during the Asian session on Monday, and for now, seems to have stalled last week's goodish recovery move from a one-month low.
New
update2025.08.04 13:58

USD/INR recovers as Indian Rupee weakens ahead of RBI policy

The Indian Rupee (INR) resumes its downside journey against the US Dollar (USD) at the start of the week.
New
update2025.08.04 13:43

India Gold price today: Gold steadies, according to FXStreet data

Gold prices remained broadly unchanged in India on Monday, according to data compiled by FXStreet.
New
update2025.08.04 13:36

EUR/JPY strengthens to near 171.00 amid uncertainty about timing of BoJ's next rate hike

The EUR/JPY cross gains momentum to near 171.00 during the Asian trading hours on Monday. The Japanese Yen (JPY) weakens against the Euro (EUR) amid reduced Bank of Japan (BoJ) rate hike expectations and political uncertainty in Japan.
New
update2025.08.04 13:22

US Dollar Index remains above 98.50, concerns rise as Trump dismisses BLS Commissioner

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding its position after registering around 1.5% losses in the previous session. The DXY is trading around 98.70 during the Asian hours on Monday.
New
update2025.08.04 13:10

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel