NZD/USD remains steady near 0.6050 ahead of US PMI data

• NZD/USD may lose ground as the US Dollar edges higher ahead of the S&P US Global Purchasing Managers Index data.
• Market sentiment improves as the European Union and the United States are nearing to reach an agreement.
• RBNZ's Conway said that the central bank is set to deliver a rate cut if inflation continues to ease.

NZD/USD extends its gains for the third successive session, trading around 0.6050 during the early European hours on Thursday. The upside of the pair could be restrained as the US Dollar (USD) attempts to recover losses ahead of the S&P US Global Purchasing Managers Index (PMI) data for July later on the day.

However, the Greenback may further lose ground amid risk-on sentiment, driven by the optimism over further trade deals between the United States (US) and key partners. The Financial Times reported that the European Union (EU) and the United States (US) are closing in on a deal that would impose 15% tariffs on EU goods imported into the US. Additionally, US President Donald Trump announced on Tuesday a major tariff deal with Japan, which includes a 15% tariff on Japanese exports.

Traders are also seeking clarity on talks with China, with Treasury Secretary Bessent scheduled to meet Chinese officials later in the week. On the monetary policy front, markets are focused on next week's Federal Reserve meeting, where rates are expected to be kept on hold, with potential cuts anticipated in October.

Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway noted on Thursday that tariffs will mean a weaker global economy and weaker demand, and the country will constantly monitor data. Conway also highlighted that the central bank is prepared to cut interest rates further if price pressures continue to ease as anticipated.