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Rough week for Kiwi bulls thanks to the classic combination of risk-off global sentiment and a dovish Reserve Bank of New Zealand.

New Zealand Headlines and Economic data
Monday:
- NZ commodity prices extend gain in April, March figures revised higher
- Trump’s Tariff Threat Leaves Beijing Stalling on Next Talks – global financial markets jumped into risk aversion mode after news of Trump’s tariff threat to China, prompting a sell off in risk assets like the New Zealand dollar.
Tuesday:
- New Zealand two-year inflation expectations 2.01% for Q2: RBNZ
- Reserve Bank interest rates: RBA leaves cash rate on hold at 1.5% – As with many other top tier Australian related catalysts, the New Zealand dollar picked up in volatility in reaction to the Reserve Bank of Australia’s latest interest rate decision.
Wednesday:
- New Zealand central bank cuts rates to record lows, signals another next year – this was obviously the catalyst for the spike lower in Kiwi pairs on the session. The move to cut was somewhat already expected by the market, which is likely the reason why Kiwi pairs were able to quickly bounce back to near pre-event levels.
Thursday:
Friday:
- Kiwis splash out on travel, food in April as card spending rises
- RBNZ Needs 3% Economic Growth to Meet Targets, Bascand Says
- Trump’s 25% China tariffs begin as trade talks between two nations continue – this event and the various news updates leading up to the start of the tariffs were likely the reason for a pick up in volatility for currencies as traders moved back and forth between positive and negative risk sentiment. Eventually, sentiment became less negative before the close of the week as Trump says trade talks with China will continue, tariffs may or may not stay.