NZD breaks through US$0.5950 due to a softer Greenback

Daily Currency Update

The New Zealand dollar is stronger this morning when valued against the Greenback, trading at US$0.5957 at the time of writing. The NZD/USD pair continues to climb for the second straight session as the US dollar weakens, with traders closely monitoring developments in US-China trade relations.

President Donald Trump says tariffs on Chinese imports to the United States will eventually be lowered, after both Beijing and Washington appeared to soften their positions about potential trade talks. Weeks of tit-for-tat escalation between the world’s two largest economies have driven US tariffs on Chinese products to a staggering 145% and Chinese levies on American goods to 125%.

Over the past two weeks, both sides have appeared to moderate their rhetoric. The US tariffs have already started to affect China’s export-reliant economy. In April, factory activity there showed its steepest contraction in 16 months, while new export orders dipped to their lowest level since 2022, during the depths of the Covid-19 pandemic, according to official data.

Looking at the local calendar today, we will see the release of the monthly ANZ Commodity Prices. Tomorrow, Statistics New Zealand will release the long-awaited quarterly Unemployment Rate figures, which are expected to rise to 5.3%, up from 5.1%, the previous quarter.