- The New Zealand Dollar to US Dollar (NZD/USD) exchange rate is exhibiting weakness following the cessation of tariff escalations after a 90-day period, coupled with a substantial 115% reduction in reciprocal tariffs.
- United States Trade Representative Jamieson Greer acknowledged the unsustainable nature of the embargo strategy and emphasized the mutual commitment of both nations to the established pause in trade tensions.
- The New Zealand Dollar is facing continued downward pressure, primarily driven by market expectations of further monetary policy easing measures by the Reserve Bank of New Zealand (RBNZ).
The NZD/USD pair is currently trading under pressure, hovering near the 0.5900 level during the early hours of the European trading session on Monday. This downward trend persists despite a general improvement in global trade sentiment, spurred by encouraging developments in the ongoing trade discussions between the United States and China. The US Dollar (USD) has gained strength following the release of a joint statement emanating from the high-level trade negotiations conducted over the weekend in Geneva, Switzerland. The aforementioned statement confirmed the United States’ decision to temporarily suspend the imposition of 24 percentage points of its existing tariff rate on goods imported from China for an initial period of 90 days, providing a window for further negotiations and potential resolution of trade disputes.
During a scheduled press briefing, United States Treasury Secretary Scott Bessent underscored the significance of the bilateral agreement, emphasizing the importance of the 90-day pause in tariff escalations and the considerable 115% reciprocal reduction in tariffs implemented by both nations. Secretary Bessent further commented on the constructive atmosphere of the discussions, noting the strong personal rapport established between the negotiating teams and their unwavering focus on safeguarding their respective national interests. He also mentioned that further talks are scheduled in the coming weeks to address intellectual property rights and market access issues.
United States Trade Representative Jamieson Greer echoed similar sentiments, highlighting the mutual respect and understanding that characterized the interactions between the two delegations. Representative Greer acknowledged the inherent limitations and unsustainable nature of the previous embargo-centric approach and reaffirmed the commitment of both the United States and China to upholding the 90-day pause in trade hostilities. However, he also clarified that the issue pertaining to the illicit trafficking of fentanyl remains unresolved and will require further dedicated attention in future discussions.
Despite the prevailing positive backdrop in international trade relations, the New Zealand Dollar (NZD) continues to be weighed down by persistent expectations of further monetary policy easing measures by the Reserve Bank of New Zealand (RBNZ). Recent economic data originating from within New Zealand has indicated a weakening of domestic labor market conditions, characterized by a slowdown in wage growth. These developments have collectively strengthened the argument for a potential 25 basis point reduction in the official cash rate (OCR) during the RBNZ’s upcoming monetary policy meeting later this month. Financial markets are also actively pricing in the likelihood of additional easing measures beyond the immediate horizon, with current forecasts suggesting that the OCR could potentially fall to 3% by the conclusion of the current fiscal year. Furthermore, market participants are anticipating three additional rate cuts to be implemented throughout the course of 2025, reflecting concerns about the medium-term economic outlook for New Zealand.
New Zealand Dollar PRICE Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.14% | 0.87% | 0.87% | 0.46% | -0.03% | 0.57% | 1.02% | |
| EUR | -1.14% | -0.13% | 0.26% | -0.17% | -0.53% | -0.07% | 0.37% | |
| GBP | -0.87% | 0.13% | 0.58% | -0.04% | -0.38% | -0.01% | 0.51% | |
| JPY | -0.87% | -0.26% | -0.58% | -0.42% | -1.52% | -1.15% | -0.09% | |
| CAD | -0.46% | 0.17% | 0.04% | 0.42% | -0.22% | 0.11% | 0.55% | |
| AUD | 0.03% | 0.53% | 0.38% | 1.52% | 0.22% | 0.36% | 0.88% | |
| NZD | -0.57% | 0.07% | 0.01% | 1.15% | -0.11% | -0.36% | 0.42% | |
| CHF | -1.02% | -0.37% | -0.51% | 0.09% | -0.55% | -0.88% | -0.42% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
