• NZD/USD drifted lower on Friday as markets turned their focus to U.S.-China trade talks this weekend.
• U.S. Treasury Secretary Scott Bessent will meet China’s Vice Premier He Lifeng in Switzerland on May 10 to address trade disputes impacting crude oil demand and global growth.
•A U.S.-UK trade deal has boosted optimism for progress in U.S.-China trade talks set for Saturday .
• Trump expressed optimism about upcoming U.S.-China trade talks, suggesting meaningful negotiations will take place and indicating that the 145% tariffs on Chinese goods could be lowered.
• On the monetary front, markets are heavily betting on a rate cut from the Reserve Bank of New Zealand to 3.25% this month, with swaps indicating further easing to a terminal rate of 2.75%.
• Immediate resistance is located at 0.5939(38.2%fib), any close above will push the pair towards 0.5977(May 8th high).
• Support is seen at 0.5863 (50%fib) and break below could take the pair towards 0.58180(April 14th low).
Recommendation: Be on sidelines


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