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The NZD/USD pair rose to near 0.5950 during Thursday’s Asian session, supported by a weaker U.S. dollar (USD). Traders were bracing for weekly U.S. jobless claims, the Chicago Fed’s national activity index, durable goods orders and existing home sales data due later on Thursday.
U.S. Treasury Secretary Scott Besant said on Tuesday that the current tariff standoff with China is unsustainable and he expects the trade war between the world’s two largest economies to “de-escalate” in the near future. Late on Wednesday, U.S. President Donald Trump’s administration said it had spoken to 90 countries about the tariffs.
The Trump administration noted that the United States will set tariffs on China in the next two to three weeks, and it is up to China to decide when the tariffs can be reduced. Uncertainty surrounding Trump’s trade policies has stoked concerns about a slowdown in the U.S. economy and dragged the dollar lower.
On the NZD front, rising expectations that the Reserve Bank of New Zealand (RBNZ) will cut the official cash rate (OCR) at its May meeting may limit the upside for the pair. The Reserve Bank is widely expected to cut the 3.5 per cent OCR by 25 basis points (bps) in May, with a further fall to 2.75 per cent by the end of the year.
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