NZD/USD drops 0.8% despite stronger Q1 GDP growth data

NZD/USD plunged 0.8% to 0.5765 as overwhelming risk aversion overshadowed New Zealand's positive Q1 GDP growth surprise. The economy expanded more than expected, yet the kiwi failed to gain traction amid broad market uncertainty and USD strength. Safe-haven flows dominated trading, with investors dismissing positive fundamental data in favor of defensive positioning. The pair broke below crucial support at 0.5800, accelerating losses toward the 0.5750 area. Technical indicators suggest oversold conditions developing, but momentum remains firmly bearish. Resistance now sits at 0.5820, with any recovery attempts likely capped by persistent risk-off sentiment. Despite strong domestic fundamentals, external factors continue driving NZD weakness. Traders should watch for any shift in global risk appetite as the primary catalyst for potential kiwi recovery.