NZD/USD Stuck Near Weekly Low Amid Geopolitical Tensions

The New Zealand Dollar (NZD) is stuck near its weekly low of around 0.5865, following China's trade data release.

The NZD/USD pair has been trading in a narrow range for two days, with prices showing little movement after the Chinese Trade Balance figures were announced.

The data revealed a higher-than-expected surplus of $112.5 billion, but lower than the previous month's release, and a rise in exports of 23% year-over-year (YoY), compared to 27% last June.

However, geopolitical tensions continue to support the US Dollar (USD) and weigh on the NZD/USD pair, as concerns over a wider regional conflict escalate following reports of planned attacks by Iraqi militia factions and Iran-backed Houthis on Saudi Arabia.

The Reserve Bank of New Zealand's hawkish tilt may provide some support for the Kiwi and limit the downside for the NZD/USD pair, but USD bulls remain cautious ahead of the crucial US Nonfarm Payrolls (NFP) report.