The pair mainly benefits from a firmer New Zealand Dollar (NZD) after the release of stronger-than-expected trade data from New Zealand (NZ), while the US Dollar (USD) remains supported by mixed fundamentals. The latest figures show that New Zealand recorded a trade surplus of NZ$52 million in December, compared with a deficit of NZ$163 million in the previous month. This improvement in the trade balance reinforces the view of stronger external demand and supports the New Zealand Dollar against the US Dollar. Finally, comments from US Treasury Secretary Scott Bessent reaffirming Washington’s commitment to a strong-dollar policy offer additional support to the Greenback. Despite this, markets continue to price in two Fed rate cuts this year, allowing NZD/USD to maintain a positive short-term bias.