Anna 
The NZD/USD pair encountered fresh selling pressure on Friday, dipping to a new daily low following the release of disappointing Chinese trade data during the early European session. Currently hovering near the lower end of the weekly range around the 0.5970-0.5975 region, the pair reversed the modest recovery gains seen in the previous session.
Data from the Customs General Administration of China revealed a significant decline in exports, dropping by a 7.5% year-on-year rate in March, compared to the expected 3.0% decrease and the 7.1% growth recorded in the January-February period. Additionally, imports fell by a 1.9% year-on-year rate in the reported month, falling short of the anticipated 1.2% rise and the previous 3.5% increase. These figures signal weak global and domestic demand, raising concerns about the recovery in the world’s second-largest economy and weighing on antipodean currencies like the Kiwi.
Conversely, the US Dollar (USD) strengthened, reaching a fresh year-to-date peak amid expectations that the Federal Reserve (Fed) will postpone interest rate cuts due to persistent inflation. Geopolitical tensions further boosted the safe-haven appeal of the greenback, adding downward pressure on the NZD/USD pair. The prevailing fundamental landscape suggests a downside bias for spot prices, with any attempted recoveries likely to face selling pressure.
Market participants are now awaiting the release of the Preliminary Michigan Consumer Sentiment Index and speeches by influential FOMC members during the early North American session. These events are expected to drive USD demand and potentially impact the NZD/USD pair. Despite the prospect of some market movement, the pair remains on course to record weekly losses, albeit holding above the year-to-date trough near the 0.5940 region touched last week.
