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NZD/USD stays under pressure after China leaves LPRs unchanged
The kiwi was trading near 0.5840, while New Zealand’s trade surplus narrowed to NZD 0.02 billion in June and the US dollar gained safe-haven support amid US Iran strikes.
NZD/USD remained in negative territory for a third straight day, holding near 0.5840 in Asian trading on Monday, according to FXStreet.
The pair’s losses followed China’s decision by the People’s Bank of China to leave its Loan Prime Rates unchanged, with the one-year LPR at 3.00% and the five-year LPR at 3.50%, a move that kept investors focused on risks for the New Zealand dollar given China is a key trading partner.
FXStreet also pointed to New Zealand trade data showing the trade surplus narrowed sharply to NZD 0.02 billion in June, down from NZD 0.16 billion a year earlier. Exports rose 24.8% year on year to NZD 8.09 billion, but imports increased faster, up 27.8% to NZD 8.07 billion, with import growth outpacing export gains.
Meanwhile, the US dollar received additional support from safe-haven demand as tensions between the US and Iran escalated, with the US launching its ninth consecutive night of strikes and Iranian officials saying a ceasefire had effectively ended, raising concerns about potential disruptions to Middle East oil flows.