Ella 
NZD/USD slipped slightly to around 0.5985 during Friday’s Asian session, pressured by a stronger U.S. dollar. The lack of progress on the US-China trade deal has put some selling pressure on the Chinese proxy New Zealand dollar. The final reading on Michigan consumer sentiment will be released later on Friday.
U.S. President Donald Trump said Thursday night that his administration is in ongoing trade talks with China. At the same time, China said it had not yet negotiated on the economy and trade, and urged the United States to cancel all unilateral tariff measures if it really wanted to resolve the issue. Trade tensions between the world’s two largest economies could weaken the New Zealand dollar (NZD) as China is an important trading partner of New Zealand.
Rising market expectations that the Reserve Bank of New Zealand (RBNZ) will cut the Official Cash Rate (OCR) at its May meeting could add to downward pressure on the New Zealand dollar. The RBNZ is widely expected to cut its 3.5 per cent OCR by 25 basis points (bps) in May and further to 2.75 per cent by the end of the year.
China’s Ministry of Finance said on Friday that the current world economic growth momentum is insufficient, and tariffs and trade wars are further affecting economic and financial stability. Meanwhile, Pan Gongsheng, governor of the People’s Bank of China (PBOC), noted that economic fragmentation and trade tensions continued to disrupt industrial supply chains and weaken the momentum of global growth. However, any positive developments regarding Chinese stimulus measures could help limit NZD losses in the near term.
You Might Be Interested In:
- What Happens to Your House If the U.S. Dollar Collapses?
- 5 Countries Moving Away from the US Dollar
- The Strong Dollar: What Travelers Need to Know
