NZD/USD extends losses amid RBNZ's dovish stance and US-China trade tensions

• NZD/USD weakens for the seventh consecutive day, extending its downtrend amid sustained selling pressure.
• RBNZ's aggressive rate cut and dovish outlook continue to weigh on the Kiwi amid weak domestic fundamentals.
• Technical setup shows a falling wedge pattern forming, with key support at 0.5682 and resistance near 0.5750.

The New Zealand Dollar (NZD) remains on the defensive against the US Dollar (USD) on Wednesday, extending its losing streak to a seventh consecutive session as investors continue to punish the Kiwi despite a broadly weaker Greenback. The sustained sell-off reflects deepening concerns over New Zealand's fragile economic outlook following the Reserve Bank of New Zealand's (RBNZ) aggressive interest rate cut last week and rising expectations of further monetary easing.

At the time of writing, NZD/USD is trading around 0.5716, hovering near a six-month trough, as the currency struggles to find a foothold amid mounting domestic headwinds and persistent bearish momentum. The US Dollar Index (DXY), which measures the Greenback's performance against a basket of six major peers, is hovering around 98.82, down 0.22% on the day.

Elsewhere, rising global uncertainty and escalating trade frictions between the United States (US) and China further weigh on the Kiwi's performance. New Zealand's economy is closely tied to China, which absorbs nearly 30% of its total exports, making the country particularly sensitive to shifts in Chinese demand. As tensions between Washington and Beijing intensify, risks to global trade and commodity flows have increased, dampening sentiment toward risk-sensitive currencies like the Kiwi.

From a technical standpoint, NZD/USD remains in a clear downtrend, marked by a series of lower highs and lower lows. At the same time, the pair appears to be shaping a falling wedge pattern, typically seen as a sign of bearish exhaustion and a potential precursor to a bullish reversal.

The price is currently hovering near the lower boundary of the wedge, which acts as immediate support around the previous day's low at 0.5682. A decisive break below this area could open the door for further downside toward the April 10 low at 0.5628, and below that, the year's swing low at 0.5484.

On the upside, initial resistance is seen near 0.5750, a former support level that has now turned into resistance, aligning with the upper boundary of the falling wedge. A sustained move above this zone could signal the start of a corrective rebound, with further upside targets at the 21-day Simple Moving Average (SMA) around 0.5800 and the 50-day SMA near 0.5865.