NZD/USD struggles to return above 0.6000 with the US Dollar firmer on cautious markets

The New Zealand Dollar extends losses amid the risk-off mood, following the new tariff threats from the US.
Growing trade uncertainty is supporting the US Dollar and weighing risk-sensitive assets such as the NZD.
Upbeat trade data from China eased pressure on the Kiwi earlier on Monday.

Guillermo Alcala FXStreet

The New Zealand Dollar is trimming some losses in the early European session. Still, it remains trading lower for the second consecutive day, weighed by a risk-averse market sentiment after the new twist of Trump’s tariff saga.

The NZD USD is bouncing up from fresh three-week lows at 0.5975 hit during Monday’s Asian session, but it seems unable to return above the 0.6000 round level, which keeps the pair 0.25% below the daily opening levels.

The US President rattled markets over the weekend, announcing 30% tariffs on imports from the European Union and Mexico, higher than the 20% and 25% respective tariffs announced on April 2, “Liberation Day,” adding uncertainty to the global trade outlook. Risk-sensitive currencies, such as the Kiwi, are under pressure amid the cautious market mood.
guidance
The market reaction, however, has been tame. The targeted countries have refrained from announcing immediate retaliation and remain hopeful of reaching a deal before the August 1 deadline, which keeps risk aversion subdued.

Upbeat data from China is supporting the NZD

In the macroeconomic front, trade data from China, New Zealand’s principal partner, has provided some support to the NZD. China’s trade surplus widened beyond expectations, boosted by a sharp increase in exports on the back of a de-escalation of the trade war with the US.

These figures improve the expectations of China’s second quarter Gross Domestic Product, which is due to be released on Tuesday, and might provide some guidance to the NZD, in the absence of first-tier data from New Zealand this week.
(This story was corrected on July 14 at 09:35 GMT to say that the US tariff deadline is August 1, and not April 1 as previously reported.)

Economic Indicator

Trade Balance USD

The Trade Balance released by the General Administration of Customs of the People’s Republic of China is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the CNY. As the Chinese economy has influence on the global economy, this economic indicator would have an impact on the Forex market. In general, a high reading is seen as positive (or bullish) CNY, while a low reading is seen as negative (or bearish) for the CNY.

Economic Indicator

Imports (YoY)

Imports of goods and services, released by National Bureau Statistics of China, consist of transactions in goods and services (sales, barter, gifts or grants) from non-residents to residents.

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