NZD/USD maintains positive momentum above 0.5750 amid US-China trade war concerns

NZD/USD remains in a positive position around 0.5770 after reaching a daily high of 0.5800 during Asian trading hours on Friday. The pair’s gains were supported by broad weakness in the U.S. dollar (USD) amid ongoing economic concerns stemming from heightened tariff tensions.

On Wednesday, Trump announced a 90-day suspension of tariffs on all countries except China, reversing his previous stance. Trump said earlier Thursday that China faces a 145 percent tariff rate and clarified that China also faces a 20 percent upfront tax on fentanyl. Concerns about Trump's threatened tariffs have stoked fears of a global recession and trade war, weakening the dollar and providing support for the pair.

On the New Zealand dollar front, the Reserve Bank of New Zealand (RBNZ) cut its benchmark interest rate by 25 basis points (bps) at its April meeting on Wednesday, amid continued declines in inflation and weak domestic economic conditions. Analysts expect the RBNZ to make a deeper 50 basis point rate cut, with markets pricing in a potential further rate cut of up to 100 basis points by 2025. This could limit the upside for the New Zealand dollar (NZD) in the near term.