The New Zealand dollar dropped to around $0.607 on Thursday, extending losses from the previous session, with investors closely monitoring global trade developments.
President Donald Trump had previously said he was not planning to extend the July 9 deadline for countries to negotiate trade deals, even as talks with key partner Japan failed to make headway.
On Wednesday, Trump announced a deal with Vietnam that would allow US goods to enter the country duty-free, while Vietnamese exports to the US would face a 20% tariff—lower than the 46% announced in April.
Meanwhile, investors geared up for the US non-farm payrolls report, due later today, for more clues on the Federal Reserve’s next steps.
On the domestic front, the Reserve Bank of New Zealand is widely expected to pause its easing cycle at next week’s meeting, although investors still expect one or two additional 25bps cut later this year amid concerns over the impact of US tariffs.