The New Zealand dollar held steady around $0.597 on Friday, pausing a seven-day winning streak, as expectations of further easing by the Reserve Bank of New Zealand sapped the momentum.
This came despite stronger-than-expected consumer inflation data in Q1, while core inflation measures eased.
With price pressures contained and still within the RBNZ’s target range, markets continue to anticipate a rate cut in May and a reduction of the cash rate to 2.75% by year-end.
Meanwhile, investors are closely monitoring US trade policy developments, given New Zealand’s strong export ties—especially with China, its largest trading partner.
President Trump expressed confidence on Thursday that a trade deal with China could be finalized within three to four weeks.
The Kiwi is on track for its second consecutive weekly gain.