NZD/USD strengthens above 0.6000 on potential of extended US-China tariff truce 

• NZD/USD gains ground to around 0.6020 in Monday's early Asian session.  
• The potential of an extended tariff truce between the US and China boosts the risk sentiment, supporting the China-proxy Kiwi. 
• Investors await the Fed interest rate decision on Wednesday ahead of US employment data. 

The NZD/USD pair trades on a positive note near 0.6020 during the early Asian session on Monday. The New Zealand Dollar (NZD) strengthens against the Greenback amid hopes that the United States (US) will extend its tariff truce by another three months.

Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will meet in Stockholm later on Monday to discuss the long-standing economic dispute between the world's two largest economies. The South China Morning Post reported, citing unnamed sources, that the US and China are expected to extend their tariff truce and will not impose additional tariffs on each other during the extension. Positive developments surrounding US-China trade talks provide some support to the China-proxy Kiwi, as China is a major trading partner of New Zealand.

The US Federal Reserve (Fed) is widely expected to hold rates at their current levels at its July meeting on Wednesday. According to the CME FedWatch tool, markets have priced in nearly a 62% possibility of a rate cut in the September meeting. Investors will closely monitor the FOMC press conference for some hints about the timeline of rate reduction this year. 

Additionally, the US employment report will take center stage on Friday, as it could signal the likelihood of rate cuts at future Fed meetings. If the report shows a stronger-than-expected outcome, this could lift the Greenback and create a headwind for the pair.