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NZD/USD rises above 0.5650 amid US-China truce extension

The China Commerce Ministry said the US trade ceasefire will extend to January 2027, supporting the China-proxy New Zealand dollar.

Reported · Written up by our desk · Major Pairs

The NZD/USD pair strengthened to around 0.5665 during Asian trading on Monday, with positive developments around US-China talks supporting the New Zealand dollar against the US dollar, according to FXStreet.

China’s Commerce Ministry said the trade ceasefire with the US is set to be extended to January 2027, and Beijing and Washington agreed to establish a China-US Trade Council after the eighth round of economic and trade talks.

FXStreet also noted that while traders took heart from the renewed engagement, hawkish signals from Federal Reserve policymakers have supported rate hike expectations, with Cleveland Fed President Beth Hammack saying inflation risks remain high and restrictive monetary policy should be maintained.

Traders, according to CME Fed pricing cited by FXStreet, see a 65.9% probability of a Fed rate hike in October and a 94.3% chance in December.

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