New Zealand’s dollar weakens as China’s unchanged loan prime rates and softer trade data weigh on the kiwi amid broader USD strength.
The NZD/USD pair fell for a third straight session, trading near 0.5840 in Asian hours after the People’s Bank of China left its one-year and five-year loan prime rates at 3.00% and 3.50%, respectively. China’s policy stance adds pressure on the kiwi, given the two nations’ close trade ties.
New Zealand’s trade surplus shrank to NZD 0.02 billion in June, missing forecasts of NZD 0.25 billion and marking the smallest surplus since February. Exports rose 24.8% year-on-year to NZD 8.09 billion, but imports surged 27.8% to NZD 8.07 billion, outpacing export growth.
The US dollar’s safe-haven appeal, fueled by escalating US-Iran tensions, further weighed on the pair. The kiwi’s decline reflects broader risk aversion and concerns over Middle East stability disrupting oil flows.