NZD Surges as US-China Trade Talks Yield Positive Developments

The New Zealand Dollar (NZD) has strengthened to around 0.5665 against the US Dollar (USD), thanks in part to positive developments surrounding US-China trade talks.

China's Commerce Ministry announced that the trade ceasefire with the US will be extended to January 2027, and both countries agreed to establish a China-US Trade Council under their bilateral consultation mechanism.

Hawkish signals from Federal Reserve (Fed) policymakers have also bolstered rate hike expectations, which could boost the USD. Cleveland Fed President Beth Hammack said that inflation risks remain high and restrictive monetary policy should be maintained.