NZD/USD STRENGTHENS ABOVE 0.5950 AMID HOPES FOR US-CHINA TRADE DEAL
NZD/USD STRENGTHENS ABOVE 0.5950 AMID HOPES FOR US-CHINA TRADE DEAL
The New Zealand Dollar (NZD) has gained momentum against the US Dollar (USD), with the NZD/USD pair trading around 0.5980 during the Asian trading hours on Wednesday.
U.S. Treasury Secretary Scott Bessent described the ongoing U.S.-China trade war as "unsustainable" and suggested that it would likely "de-escalate.
" He noted that while formal negotiations had yet to begin, a potential deal remained possible.
These comments were made at a private investor meeting hosted by JPMorgan Chase in Washington.
Following Bessent's remarks, U.S. financial markets experienced a rally.
The S&P 500 surged nearly 2%, and the Nasdaq Composite rose by 2.7%. The U.S. Dollar Index increased by 0.7%, reflecting renewed investor confidence.
The renewed strength of the U.S. dollar, bolstered by expectations of a de-escalation in trade tensions, has led to the NZD/USD pair trading higher near the 0.5980 level.
This marks a rebound from previous losses and indicates a shift in market sentiment.
Despite Bessent's optimistic outlook, the U.S. has imposed 145% tariffs on Chinese imports, and China has retaliated with 125% tariffs on American goods.
These high tariffs function as trade embargoes and have contributed to instability in financial markets, rising interest rates, and concerns about inflation and economic growth.
