NZD/USD continues to decline, trading around 0.5720, as traders await New Zealand’s February consumer confidence report on Friday. The pair has lost value for four consecutive sessions, with market attention on the Reserve Bank of New Zealand’s recent rate cut and the impact of China’s manufacturing data expected over the weekend.

Additionally, discussions between China’s Vice Commerce Minister and US business leaders regarding tariffs are pivotal, following news of the Trump administration’s plans to enforce stricter chip export controls on China. These developments are compounded by US tariffs on Canada and Mexico, reflecting heightened global trade tensions.

The New Zealand economy, reliant on resource exports, is particularly vulnerable to shifts in trade policy and risk sentiment. The overall outlook remains cautious as traders consider the implications of these discussions on the currency’s performance.

The downward movement in the currency pair over the last four sessions has come as markets digest both domestic policy shifts and broader economic signals. With consumer confidence data for February due shortly, many will be looking for signs of resilience, or further weakness, in the local economy. A weaker reading could reinforce concerns about monetary policy and growth, given the central bank’s recent decision to lower rates.

At the same time, developments in China remain a focal point. Weekend manufacturing data will provide another gauge of economic momentum in the region, which in turn has an impact on trade-sensitive currencies. If figures disappoint, sentiment around export-driven economies could deteriorate further, keeping downward pressure on the exchange rate.

Meanwhile, trade-related discussions remain active, particularly those involving Beijing and Washington. The Vice Commerce Minister’s engagement with US business representatives comes at a time of renewed tensions over technology exports, with Washington pushing for stricter chip controls. This isn’t happening in isolation – recent tariff adjustments targeting Canada and Mexico signal a broader reassessment of trade policy that could have ripple effects across markets.

For those navigating currency price movements, it’s important to account for these external elements rather than focusing solely on central bank actions. The country’s heavy dependence on commodity exports means any shift in global trade conditions has a direct influence on market expectations. If upcoming discussions point towards more restrictive policies or sluggish industrial output, the impact will be felt quickly.

The coming days offer multiple points of volatility. Whether it’s local indicators, China’s latest economic figures, or geopolitical manoeuvring, all eyes remain on how these factors shift momentum. Traders positioning for further moves will need to stay ahead of new information, weighing how each variable plays off the next.