The New Zealand dollar struggled around $0.559 on Friday, trading near two-year lows, weighed down by a strong US dollar ahead of the highly anticipated nonfarm payrolls report, which could shape the Federal Reserve’s monetary policy outlook. Minutes from the Fed’s December meeting indicated a more cautious approach to future rate reductions, amid concerns that President-elect Donald Trump's policies could prolong the fight against rising prices. In China, the latest inflation data remained weak, raising concerns about demand. This exerts some selling pressure on the Kiwi, given that China is New Zealand’s largest trading partner. Domestically, investors continue to expect the Reserve Bank of New Zealand will cut its 4.25% cash rate by an outsized 50bps in February and reduce it further to 3.0% by the end of the year, as the economy grapples with a deep recession. The New Zealand dollar is on track for its sixth consecutive weekly loss.