• The New Zealand Dollar rebounds against the US Dollar at the start of the week.
• Chinese economic data supports the Kiwi without triggering sustained follow-through.
• Donald Trump’s renewed tariff threats keep market sentiment fragile.

NZD/USD trades around 0.5780 on Monday at the time of writing, up 0.50% on the day. The New Zealand Dollar (NZD) found support from generally encouraging economic data out of China, New Zealand’s main trading partner. The latest figures show that China’s Gross Domestic Product (GDP) growth slowed to 4.5% YoY in the fourth quarter, from 4.8% previously, but came in above market expectations.

This performance is largely attributed to strong exports, which helped offset the ongoing weakness in domestic demand. Industrial Production also accelerated to an annual pace of 5.2%, while Retail Sales growth softened and the property sector continued to weigh on consumer spending.

Despite this fundamental support, the impact on antipodean currencies remains limited. Investors stay cautious as global risk aversion intensifies, an environment that typically weighs on the New Zealand Dollar. This pressure is partly offset by the still-restrictive stance of the Reserve Bank of New Zealand (RBNZ), whose guidance on the future policy path continues to offer some support to the currency.

On the US side, the US Dollar (USD) weakened following comments from US President Donald Trump, who threatened to impose new tariffs on several European countries. These announcements, linked to tensions surrounding the Greenland issue, have revived fears of a renewed trade conflict and increased uncertainty around US economic policy.

Against this backdrop, the Greenback loses some of its safe-haven appeal, allowing NZD/USD to hold above the mid-0.5700s.