NZD/USD Plunges Below 0.6100 as New Zealand Economic Data Disappoints

NZD/USD tumbled 0.8% to 0.6085, breaking below the psychological 0.6100 support level after dismal New Zealand economic data reinforced expectations for aggressive RBNZ rate cuts. Q1 GDP contracted 0.3% quarter-on-quarter, missing forecasts of 0.1% growth, while business confidence plummeted to -15 from -8 previously. The kiwi dollar faces additional pressure from weakening Chinese demand, New Zealand's largest trading partner. Technical indicators show oversold conditions, but momentum remains firmly bearish with the next support target at 0.6050 (yearly low). The 50-day moving average at 0.6150 now acts as resistance. Markets are pricing in a 70% probability of a 50 basis point RBNZ rate cut at the next meeting. Traders should watch for any stabilization in Chinese economic data which could provide temporary relief for the NZD, though the domestic fundamental backdrop remains decidedly negative.