NZD Weakens on Rising Tensions and Oil Prices Ahead of NFP

The New Zealand Dollar (NZD) weakened for a second consecutive session, trading near its weekly low around 0.5865 against the US Dollar (USD). This comes as market participants remain focused on the upcoming US Nonfarm Payrolls report, which is expected to influence interest rate decisions by the Federal Reserve.

China's June Trade Balance figures showed a surplus of $112.5 billion, exceeding expectations but failing to provide support for the NZD. The data indicated that exports increased 23% year-on-year, while imports rose 27.5% compared to the previous period.

The surge in geopolitical tensions and higher oil prices has reinforced expectations for further interest rate hikes by the Fed, supporting the US Dollar and weighing on the NZD/USD pair.