NZD/USD trades with mild losses to near 0.5950 on modest US Dollar strength

• NZD/USD posts modest losses around 0.5960 in Friday's early Asian session. 
• China's exports beat expectations, rising over 8.0% in July.
• Fed's Waller emerges as the favorite for Fed Chair among the Trump team. 

The NZD/USD pair trades with mild losses near 0.5960 during the early Asian trading hours on Friday. However, the potential downside for the pair might be limited amid encouraging Chinese trade data. Later on Friday, the preliminary reading of the University of Michigan's Inflation Expectations report for August will be released. 

Strong import and export data from China suggested the economic recovery of New Zealand's main trading partner, which could provide some support to the Kiwi. Data released on Thursday showed that China's surplus widened in July as exports surged. Exports rose 8.0% YoY in July, compared to 7.2% in June. The country's Imports increased 4.8% YoY in the same period versus 2.3% prior. 

New Zealand's inflation expectations fell slightly in the third quarter (Q3), according to the Reserve Bank of New Zealand (RBNZ) monetary conditions survey on Thursday. The country's two-year inflation expectation eased to 2.28% in Q3 2025 from 2.29% seen in Q2, while one-year inflation expectations declined to 2.37% in Q3 versus 2.41 % in Q2. Most respondents expect the RBNZ to cut the cash rate at the next meeting. This, in turn, might cap the upside for the pair.

On the USD's front, investors will closely monitor US President Donald Trump's plans to replace Fed Chair Powell. Bloomberg reported late Thursday that Fed Governor Christopher Waller is emerging as a top candidate to serve as the central bank's chair among Trump's advisers.