The New Zealand Dollar was unable to surpass the highest value this year at 0.6030 and has since seen a decline on Tuesday. This can be attributed to a stronger US Dollar and the anticipation that the RBNZ will lower its monetary policy on Wednesday. On the same day, the Dollar Index has risen as US markets resume after a long weekend and investors are relieved by Trump’s decision to postpone the deadline for a trade deal with the EU until July 9. This decision has eased worries about potentially damaging tariffs, as the US and the Euro Area together make up a significant portion of global trade and GDP. However, the Dollar’s resurgence may not last long, as concerns about the increasing US debt are looming. The US Senate will discuss a bill that could add $3.8 trillion to the already large $36.2 trillion debt in the next decade, which has caused a gradual sell-off of US assets in the previous week. Later today, the US Durable Goods Orders and Consumer Sentiment Index will provide more insight into the impact of these trade tensions on the US economy and will likely affect the USD’s trajectory before the release of the FOMC minutes and the important Personal Consumption Expenditures Price Index later this week. In New Zealand, the RBNZ is expected to lower rates by 25 basis points to 3.25% on Wednesday, and investors are bracing for a statement that leans towards dovishness. The bank may mention the possibility of further monetary easing due to the uncertain trade situation, which could put added pressure on the Kiwi.