The NZD/USD pair pulled back from its intraday highs during Monday’s early European session after meeting resistance near the key 0.6000 level. Even so, the pair remains slightly positive, trading around 0.5980, supported by a softer US Dollar amid fresh uncertainty surrounding US trade policy.
At the time of writing, the US Dollar Index (DXY), which measures the Greenback against six major currencies, has fallen about 0.35% to roughly 97.45.
The Dollar lost appeal after the US Supreme Court ruled President Donald Trump’s tariff policy unlawful. In response, Trump proposed a 15% global tariff plan to counter the impact of the ruling, increasing policy uncertainty.
Additional pressure on the Dollar comes from weak economic data. Fourth-quarter GDP figures disappointed, and the S&P Global Purchasing Managers’ Index (PMI) for February showed slower-than-expected growth, reinforcing concerns about economic momentum.
On the policy side, investors are waiting for comments from several Federal Reserve officials scheduled this week. Market expectations currently suggest the Fed is likely to keep interest rates unchanged at both the March and April meetings, according to the CME Fed Watch outlook.
Meanwhile in New Zealand, fourth-quarter Retail Sales were better than forecasts. Sales rose 0.9%, beating the 0.6% estimate, though still below the previous 1.9% increase.
Looking ahead, traders will also focus on the People’s Bank of China’s monetary policy decision on Tuesday, which could influence the New Zealand Dollar given China’s importance as New Zealand’s key trading partner.
