NZD/USD continued its winning streak since April 9, trading close to 0.5970 during Monday’s Asian session. The New Zealand dollar (NZD) was supported by a weaker U.S. dollar (USD), which was pressured by concerns about the economic impact of U.S. tariffs.

The New Zealand dollar remained strong following Monday's People's Bank of China (PBoC) interest rate decision. The PBoC kept its loan prime rate (LPR) unchanged at 3.10 percent for one year and 3.60 percent for five years.

Sentiment towards the New Zealand dollar improved after U.S. President Donald Trump announced an exemption from proposed "reciprocal" tariffs on key technology products made primarily in China, New Zealand's largest trading partner. Meanwhile, the U.S. Dollar Index (DXY) fell more than 0.50% to trade around 98.50, its lowest level since April 2022.

The White House imposed tariffs on Chinese ships docking at U.S. ports despite the tax exemptions, threatening global shipping routes and further escalating tensions in the U.S.-China trade conflict.

In political developments, reports on Thursday showed that President Trump was frustrated with Federal Reserve Chairman Jerome Powell and was even considering firing him. Although the market reaction was muted, White House economic adviser Kevin Hassett confirmed that Trump is exploring the possibility.