The New Zealand dollar rose to around $0.574 on Monday, attempting to rebound from a six-month low after President Trump hinted that he may not follow through with his massive tariff threat against China. Still, markets remained cautious, closely monitoring developments and the potential economic fallout between the world’s two largest economies. Meanwhile, the Kiwi came under sharp downward pressure last week after the Reserve Bank unexpectedly delivered a larger rate cut, lowering its benchmark interest rate by 50 basis points to 2.50%, the lowest in more than two years. Policymakers cited mounting concerns about the economy’s fragile outlook and signaled that further easing remains possible. Reinforcing this view, the latest PMI showed that the services sector has been contracting for over a year and a half. Investors now see a strong chance of another rate reduction at the central bank’s November meeting, with some expecting rates to fall to 2.0% next year.