- The NZD/USD loses impulse about 0.6035 in the Asian session on Monday.
- Trump said tariff cards to 12-15 countries were signed and will be sent on Monday.
- It is widely expected that the Central Bank of New Zealand Pause the relaxation cycle on Wednesday.
The NZD/USD pair extends the fall to around 0.6035 during Monday’s Asian negotiation hours. The New Zealand dollar (NZD) weakens against the US dollar (USD) amid the uncertainty about tariffs caused by US president Donald Trump. The decision on the interest rate of the New Zealand Reserve Bank (RBNZ) and the minutes of the Federal Open Market Committee (FOMC) will be the outstanding points of Wednesday.
The renewed concerns about tariffs raise the US dollar (USD) and act as a wind against the pair. Reuters reported during the weekend that the US president Donald Trump had signed letters to 12 or 15 countries delineating the various levels of tariffs they would face on the goods that export to the United States. “I signed some cards, and they will be sent on Monday,” Trump said.
Trump did not say what countries the objectives or what rates would be established. However, he said Thursday that the rates in the letters would go into force on August 1 and warned that some could be as high as 70%.
The chief economist of the RBNZ, Paul Conway, will discuss tariffs on July 24. Investors will keep an eye on developments around the commercial agreement. However, any positive progress signal could provide some support to the Kiwi, which acts as Proxy of China, since China is an important commercial partner of New Zealand.
The RBNZ is expected to maintain interest rates without changes in the July meeting on Wednesday. According to the Reuters survey, the medium forecast shows only one reduction more than 25 basic points (PBS) this year compared to two in a May survey. The assessment of the financial market sees less than 20% probabilities that the RBNZ reduces its OCR in the next week, but the possibility of a cut in August is greater than 70%.
New Zealand dollar – Frequently Questions
The New Zealand dollar (NZD), also known as Kiwi, is a well -known currency among investors. Its value is largely determined by the health of the neozyous economy and the policy of the country’s central bank. However, there are some peculiarities that can also make the NZD move. The evolution of the Chinese economy tends to move Kiwi because China is the largest commercial partner in New Zealand. The bad news for the Chinese economy is probably translated into less neozyous exports to the country, which will affect the economy and, therefore, its currency. Another factor that moves the NZD is the prices of dairy products, since the dairy industry is the main export of New Zealand. The high prices of dairy products boost export income, contributing positively to the economy and, therefore, to the NZD.
The New Zealand Reserve Bank (RBNZ) aspires to reach and maintain an inflation rate between 1% and 3% in the medium term, with the aim of keeping it near the midpoint of 2%. To do this, the Bank sets an adequate level of interest rates. When inflation is too high, RBNZ rises interest rates to cool the economy, but the measure will also raise bond performance, increasing the attractiveness of investors to invest in the country and thus boosting the NZD. On the contrary, lower interest rates tend to weaken the NZD. The differential type of types, or how they are or is expected to be the types in New Zealand compared to those set by the Federal Reserve of the US, can also play a key role in the NZD/USD movement.
The publication of macroeconomic data in New Zealand is key to evaluating the status of the economy and can influence the valuation of the New Zealand dollar (NZD). A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and can encourage the New Zealand reserve bank to increase interest rates, if this economic strength is accompanied by high inflation. On the contrary, if the economic data is weak, the NZD is likely to depreciate.
The New Zealand dollar (NZD) tends to strengthen during periods of appetite for risk, or when investors perceive that the general market risks are low and are optimistic about growth. This usually translates into more favorable perspectives for raw materials and the so -called “raw material currencies”, such as Kiwi. On the contrary, the NZD tends to weaken in times of turbulence in markets or economic uncertainty, since investors tend to sell the most risky assets and flee the most stable shelters.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.