The New Zealand dollar fell to $0.608 on Tuesday, giving back some of the previous session’s gains and retreating slightly from multi-month highs. Investors turned their focus to trade uncertainty, monitoring the global impact of US tariff policies, as the 90-day tariff reprieve is set to expire next week. Limiting further losses was a weaker US dollar, pressured by concerns over the US fiscal outlook and growing bets on deeper Federal Reserve rate cuts amid dovish signals from policymakers and ongoing political pressure. Meanwhile, private data showed that China’s manufacturing sector returned to expansion, in contrast to official data indicating factory activity contracted for a third straight month. This eased some concerns about risks to New Zealand exports, given the countries’ close trade ties. Domestically, the Reserve Bank is expected to hold steady at its July 9 meeting, with swaps pricing in just a 23% chance of a 25bps cut to 3%.