NZD/USD Rallies to 2025 Highs on Optimism Ahead of US-China Trade Talks

NZD/USD Rallies to 2025 Highs on Optimism Ahead of US-China Trade Talks

Market Bets on Progress in London Trade Talks

The New Zealand Dollar (NZD) is leading the FX market on Monday, extending its rally against the US Dollar (USD) as investors grow increasingly hopeful about a positive outcome from US-China trade talks taking place in London later today. The NZD/USD pair hit a fresh 2025 high near 0.6080, up nearly 0.7% on the day.

Trump's Weekend Remarks Lift Market Sentiment

A weekend social media post from US President Donald Trump added to market optimism. His comments suggesting that the summit “will go very well” have boosted risk appetite and fueled buying of China-linked currencies, particularly NZD and AUD.

US Dollar Pulls Back Despite Strong NFP

While last Friday’s strong US Nonfarm Payrolls (NFP) report momentarily strengthened the US Dollar, the Greenback is now pulling back as traders de-risk ahead of the bilateral summit. This has allowed risk-sensitive currencies like the Kiwi to outperform.

Key Takeaways for Forex Traders

• NZD/USD trades at new 2025 highs around 0.6080
• US-China trade summit in London fuels optimism
• Trump’s upbeat tone on talks supports risk sentiment
• US Dollar retreats after Friday’s NFP rally
• Market focus remains on trade developments and risk tone

Related Content on Tredu:

• USD Weakens Ahead of US-China Negotiations
• AUD/USD Moves in Tandem with NZD on Risk Sentiment
• What the US-China Trade Talks Mean for Forex Markets