- NZD/USD drifts lower to near 0.5710 in Friday’s Asian session.
- China’s RatingDog Services PMI eased to 52.1 in March, weaker than expected.
- The US March jobs data will be the highlight on Friday.
The NZD/USD pair extends the decline to a near four-month low around 0.5710 during the Asian trading hours on Friday. The New Zealand Dollar (NZD) softens against the US Dollar (USD) on the downbeat Chinese economic data and heightened geopolitical tensions in the Middle East. Trading volumes are likely to be thin due to the Good Friday holiday.
Data released by RatingDog on Friday showed that China’s Services Purchasing Managers’ Index (PMI) declined to 52.1 in March from 56.7 in February. This figure came in below the market consensus of 53.7. The China-proxy Kiwi edges lower following the weaker Chinese data.
Additionally, escalating tensions between the US and Iran could boost a safe-haven currency such as the Greenback and create a headwind for the pair. US President Donald Trump pressures Iran “to make a deal” after a military strike destroys a bridge near Tehran. Meanwhile, Iran’s foreign minister Abbas Araghchi stated that Washington’s recent strikes on civilian infrastructure will not force the country to back down.
Traders will closely monitor the US March jobs data later on Friday. The US economy is expected to see 60,000 job additions in March, while the Unemployment Rate is estimated to hold steady at 4.4% during the same period. Any signs of a weakening in the US labor market could drag the USD lower in the near term.
