That lulled fears raised by Trump threatening to punish China with tariffs for letting the virus escape China. While Trump has said he has evidence the virus was man made and originated in a Chinese laboratory, his own intelligence officials have said the virus developed naturally, leaping from bats to another species which in turn transmitted it to humans.
"Equities markets have had another leg higher on reports on this US-China deal remaining on track," said Mark Johnson, a private client adviser at OMF.
But it's possible the markets have gotten too carried away on the recovery from the coronavirus, he said.
"The optimism being shown in the share market isn't really representative of the real world."
Governments around the world are beginning to loosen restrictions designed to stop the virus from spreading.
New Zealand's government slightly eased restrictions two weeks ago to allow the construction industry and takeaway food operators to restart work and it will announce next week whether restrictions can be loosened further.
Johnson said the market was awaiting the US non-farm payroll data due later today and economists have revised their expectations of job losses up slightly to a record 21 million decline in jobs.
The market is also looking ahead to the Reserve Bank of New Zealand's latest monetary policy statement and is expecting its quantitative easing to double to $60 billion, he said. QE, or the Reserve Bank buying bonds and other securities from banks, is the technical name for money printing.
The New Zealand dollar was trading at 93.65 Australian cents from 93.75 cents at 5pm yesterday. It was at 49.39 British pence from 48.82 pence, at 56.41 euro cents from 55.71 cents, at 65.10 yen from 63.90 yen and at 4.3279 Chinese yuan from 4.2687 yuan.
The bid price on the two-year swap rate closed at 0.1600 per cent from 0.1450 per cent yesterday and 10-year swaps were at 0.7025 per cent from 0.7600 per cent.
