The New Zealand dollar held steady around $0.595 on Monday, halting losses in the previous session amid a relatively softer US dollar. Attention turned to US inflation data this week after the greenback faced pressure last week on rising bets for a September rate cut and possible December move amid soft labor market signs. Traders also weighed trade risks tied to US–China developments, with focus set on whether the US–China tariff truce will be extended before the August 12 deadline. Meanwhile, China’s July producer prices fell more than expected, while consumer prices were unchanged, underscoring weak demand and ongoing trade uncertainty. Such conditions pose risks to New Zealand’s export-reliant economy due to its close trade ties with China. At home, soft labor market data has strengthened expectations that the Reserve Bank of New Zealand may cut interest rates later this month, while the recent imposition of a 15% US tariff on Kiwi exports has added to the headwinds.