- The NZD/USD is declining as the US Dollar appreciates, influenced by China’s move to waive tariffs of 25% on specific American goods.
- Brooke Rollins, the US Secretary of Agriculture, mentioned that the Trump administration is in constant communication with China regarding tariff-related matters.
- The New Zealand Dollar faces further headwinds due to increasing indications of softening demand from China.
The NZD/USD currency pair is extending its losses for a second day, hovering around the 0.5940 mark in early Monday trading in Europe. This downward trend is primarily attributable to a stronger US Dollar (USD), fueled by emerging signals of de-escalation in US-China relations.
Reports from business outlets indicate that China declared on Friday that certain imports from the United States would be excluded from the substantial 25% tariffs. This news has generated hope that the protracted trade conflict between the globe’s two leading economies might be approaching resolution.
Furthermore, US Agriculture Secretary Brooke Rollins communicated on Sunday, as per Reuters, that the Trump administration is holding ongoing dialogues with China concerning tariffs. Rollins also added that talks with other trade partners were advancing, and several trade deals were “very close” to being finalized.
