NZD/USD Drops Toward 0.6000 on Trade War Fears, Strong US Jobless Data

NZD/USD Falls Toward 0.6000 as Tariff Concerns and Strong US Jobs Data Boost Dollar

Published: July 11, 2025
Category: Forex | Currencies

NZD/USD Retreats Amid Trade Fears, Robust US Data

The New Zealand Dollar (NZD) edged lower against the US Dollar (USD) in early Asian trading on Friday, with NZD/USD falling to 0.6015, retreating from a three-day winning streak. The pair’s weakness is attributed to renewed trade tensions and stronger-than-expected US labor data, both of which favored the USD.

US Jobless Claims Hit 7-Week Low

The US Department of Labor (DOL) reported that Initial Jobless Claims dropped to 227,000 for the week ending July 5, compared to 233,000 the previous week and beating the 235,000 market consensus.

This improvement in job data implies resilient labor market conditions and diminishes immediate pressure on the Federal Reserve to proceed with aggressive interest rate cuts. As a result, the US Dollar saw a boost in demand, pressuring NZD/USD lower.

Trade Tensions Resurface After Trump’s Tariff Threat

Adding to the Kiwi’s downside pressure, US President Donald Trump on Thursday threatened to impose a 35% tariff on Canadian imports effective August 1. This sparked renewed fears of a global trade war, a scenario that typically weighs on risk-sensitive currencies like the NZD.

The combination of a hawkish Fed outlook and heightened trade jitters is likely to keep NZD/USD under pressure in the short term unless risk sentiment stabilizes.