FX.co ★ New Zealand Dollar Stabilizes

The New Zealand dollar remained steady at approximately $0.60 on Monday, buoyed by a series of economic reports from China that partially mitigated prevailing geopolitical uncertainties. Chinese retail sales exceeded forecasts for May, lending some support to the Kiwi dollar due to China's significant role as a trading partner. However, subdued industrial output figures slightly dampened these positive sentiments. Concurrently, ongoing Middle East tensions continued to weigh on risk appetite. Hostilities persisted between Israel and Iran, with both nations engaging in strikes for a third consecutive day on Sunday and pledging continued retaliation. On the domestic front, a recent PMI survey revealed that the services sector continued to experience significant contraction, with the latest figures indicating the steepest decline since June 2024. This disappointing data further highlights the sluggishness of the economy, bolstering arguments for additional interest rate cuts by the Reserve Bank. Investors are now turning their attention to a series of crucial economic data releases scheduled for this week—including figures on food inflation, consumer confidence, and first-quarter GDP—to gain deeper insights into the economic outlook.