Remaining Bearish on NZD/USD Amid China’s Declining Services Sector
The New Zealand Dollar (NZD) continues to face pressure against the US Dollar (USD) as China’s services sector experiences a contraction. The NZD/USD pair remains in a downtrend, with investors showing a preference for the safe-haven USD.
China, a major trading partner of New Zealand, has seen a slowdown in its services sector growth, indicating a weakening economy. This has had a direct impact on the NZD, as uncertainty surrounding China’s economic health weighs on the currency.
Investors are closely monitoring the situation in China, as any further deterioration in the services sector could lead to increased selling pressure on the NZD. The USD, on the other hand, is likely to continue to benefit from its safe-haven status in times of economic uncertainty.
As a result, traders are advised to stay short on the NZD/USD pair, as the outlook remains bearish due to China’s faltering services sector. Keeping a close eye on economic data from China will be crucial in determining the future direction of the currency pair.