New Zealand Manufacturing Rebounds
The rise in manufacturing sales in New Zealand from a decline of 1.2% to a modest 1.1% increase suggests some resilience in the sector after previous struggles. It signals that demand dynamics may be shifting, and manufacturing output is stabilising after earlier weakness. If this trend maintains its momentum, it could provide secondary effects on broader economic activity, influencing domestic consumption, employment, and confidence.
Meanwhile, the Australian dollar remains under pressure, unable to reclaim ground above 0.6300. Despite a weakening US Dollar, broader concerns about trade and slowing global demand continue to weigh on the currency. The defensive stance in markets has prevented it from capitalising on short-term US Dollar softness. If risk sentiment fails to improve, we may see further strain on the exchange rate.
Bitcoin Market Volatility
The drop in Bitcoin to $78,000 has aligned with a broader $6 trillion contraction across asset classes. A 27% slide from its peak highlights that speculative appetite has waned in recent sessions. While volatility is characteristic of digital assets, the scale of this move suggests that leveraged positions may have been unwound. This decline also reflects widespread market caution, with traders reassessing exposure to risk-heavy instruments.
Gold, meanwhile, has held below $2,900 as market participants await clarity from upcoming US data, particularly the JOLTS job openings report. The reluctance to push higher suggests that investors are weighing economic indicators carefully before engaging in fresh positioning. Given that gold often moves in response to interest rate expectations, shifts in employment data or wage trends could influence its next direction.
