The New Zealand dollar rose to around $0.594 on Tuesday, snapping a two-day losing streak, after US President Trump extended the China tariff deadline. Late Monday, reports said the Trump administration postponed sweeping tariffs on China for 90 days, just before the previous deal expired. In response, China’s Commerce Ministry announced it would also suspend additional tariffs on US goods for the same period. These positive trade developments lifted the China-proxy Kiwi, given China’s strong trade links with New Zealand. However, gains were capped after Prime Minister Christopher Luxon signaled that US tariff relief is unlikely, following a recent hike in tariffs on New Zealand exports to 15% from 10%. This raises risks for the export-driven economy, as the US is one of its key markets. On the monetary policy front, recent soft labor market data and tame inflation have fueled expectations of a Reserve Bank rate cut next week.