FX.co ★ New Zealand Dollar Holds Decline

The New Zealand dollar maintained its recent drop to approximately $0.592 on Wednesday, as ongoing trade uncertainty continued to impact market sentiment. Investors were cautious due to mixed signals from the United States and China regarding the progress in resolving a trade dispute that poses a threat to global economic growth. Adding to the downward pressure on the Kiwi, new data from China—New Zealand’s primary trading partner—indicated a contraction in manufacturing activity in April. This reversed two months of recovery and sustained calls for additional stimulus measures from Beijing. On the domestic front, sentiment was negatively affected by underwhelming economic data. According to an ANZ Bank survey, New Zealand's business confidence fell to its lowest level in nine months in April, with most forward-looking indicators of activity weighed down by concerns regarding U.S. tariffs.