Why Is NZD/USD Struggling Below 0.5900? | Analyzing China's Trade Data Impact on Kiwi Dollar

The Which coin will boom in 2025 forbesNew Zealand dollar remains under pressure against its US counterpart, with the NZD/USD exchange rate hovering near multi-week lows around 0.5890. This downward movement reflects two significant macroeconomic developments that currency traders are currently weighing.

China's April trade figures revealed a notable deceleration in export growth, slowing to 9.3% year-over-year compared to March's 13.5% expansion. The Asian economic powerhouse reported a trade surplus of CNY 689.99 billion, marking a contraction from the previous month's CNY 736.72 billion. These numbers suggest weakening external demand that could potentially affect New Zealand's export-oriented economy.

When converted to US dollar terms, China's trade position showed a $96.18 billion surplus - exceeding analyst projections but falling short of March's performance. Import figures demonstrated modest improvement, rising 0.8% annually after March's contraction. The bilateral trade gap with the United States narrowed considerably to $20.46 billion from $27.6 billion in the prior month.

Across the Pacific, the greenback found support from encouraging employment statistics. Initial jobless claims in the United States declined to 228,000 for early May, outperforming consensus estimates. Continuing claims also retreated, dropping by 29,000 to 1.879 million, while the four-week average edged higher to 226,000. These labor market indicators reinforce expectations of sustained economic momentum in the world's largest economy.

Market participants are closely monitoring these developments as they assess the relative strength of the two currencies. The New Zealand dollar's sensitivity to Chinese economic conditions remains a critical factor, given the substantial trade relationship between the two nations. Meanwhile, the US dollar continues to benefit from its perceived safe-haven status and expectations regarding Federal Reserve policy.

Technical analysts note that the NZD/USD pair has broken through several support levels during its recent decline. The current price action suggests potential for further downside unless fundamental conditions improve. Traders will be watching for any signs of stabilization in Chinese economic data or shifts in risk sentiment that could provide support for the Kiwi.

Looking ahead, market focus will turn to upcoming economic releases from both nations, including New Zealand's business confidence surveys and US inflation data. These indicators could provide additional clues about the future trajectory of this currency pair amid evolving global economic conditions.