China’s June trade surplus of $112.5 billion misses prior $125.62 billion but beats forecasts, offering no support to the New Zealand Dollar.
The NZD/USD pair remains under pressure, trading near 0.5865 during the Asian session as China’s trade data fails to provide relief. June’s trade surplus reached $112.5 billion, exceeding the $107.0 billion estimate but falling short of May’s $125.62 billion. Exports rose 23% year-over-year, while imports climbed 27.5%, both below prior gains.
Geopolitical tensions continue to bolster the safe-haven USD, offsetting any positive impact from China’s trade figures. Reports of potential attacks on Saudi Arabia by Iraqi militias and Iran-backed Houthis, along with threats to restrict vessels in the Strait of Hormuz, have heightened risk aversion. Oil prices rose overnight, stoking inflation concerns and reinforcing expectations of a hawkish Federal Reserve.
Traders are now awaiting US nonfarm payrolls data, which could further influence Fed policy bets and USD strength. The Kiwi remains vulnerable as risk sentiment weakens and the greenback holds firm.