New Zealand Dollar Falls Amid Weak Economic Data

Summary:
The New Zealand dollar began the trading week on a weak note, with NZD/USD trading at 0.6097, down 0.35% in the European session. The decline is attributed to a disappointing Services PMI for June, which dropped to 40.2 from 42.6 in May, marking its fourth consecutive monthly decline and hitting the lowest level since May 2020. The Manufacturing PMI also fell significantly from 47.2 to 41.1. Additionally, the Reserve Bank of New Zealand surprised markets with dovish comments, maintaining rates at 5.5% and hinting at potential rate cuts. This comes amid concerns over China’s slowing economy, which could negatively impact New Zealand’s exports. Technical analysis shows NZD/USD testing support at 0.6107 and 0.6088, with resistance at 0.6138 and 0.6157.