NZD/USD Surges Toward 0.6050 on Calmer US-China Trade Tensions

NZD/USD Surges Toward 0.6050 on Calmer US-China Trade Tensions

The NZD/USD pair rises to approximately 0.6040 during early European trading on Monday, regaining momentum after slipping in the previous session. The Kiwi (NZD) is buoyed by easing geopolitical tensions and a weaker US Dollar (USD).

Trade War De-escalation Supports Risk Sentiment

Investor confidence improves following renewed diplomatic efforts between the United States and China. Presidents Donald Trump and Xi Jinping agreed to resume discussions to de-escalate the trade war, a move that has calmed global risk sentiment. A key meeting between US Treasury Secretary Scott Bessent and Chinese officials is scheduled in London on Monday, which markets will closely monitor for developments.

US Dollar Softens Despite Strong Jobs Data

While the US Dollar has weakened, its downside is expected to be limited due to last Friday's upbeat US Nonfarm Payrolls (NFP) data. The report showed job growth of 139,000 in May, above market expectations, supporting the possibility that the Federal Reserve (Fed) may leave interest rates unchanged in its June and July policy meetings.

Technical View

NZD/USD has rebounded near the 0.6050 level, and any sustained move above this psychological barrier could open the path to further gains. Traders will be watching the Fed’s rate path and developments from US-China trade talks to gauge the next move.

Related Articles from Tredu:

• China CPI & PPI Report: What It Means for NZD and AUD
• US Labor Market Update: Fed Rate Decision in Focus
• Forex Weekly Preview: June 9–14 Highlights

Conclusion

The NZD/USD pair remains underpinned by positive trade developments and risk appetite. However, with strong US employment data still influencing Fed expectations, the upside may remain capped until there’s greater clarity on US monetary policy and trade negotiation outcomes.