The New Zealand dollar stabilized around $0.60 on Monday as a slew of Chinese data helped offset some geopolitical risks. Chinese retail sales rose more than expected in May, providing some support to the Kiwi given China’s role as a major trade partner. However, weaker-than-expected industrial output tempered the optimism. Meanwhile, tensions in the Middle East continued to dampen risk sentiment, as Israel and Iran exchanged strikes for a third consecutive day on Sunday, with both nations vowing to continue retaliating. Domestically, a fresh PMI survey showed that the services sector remained deeply in contraction, with the latest reading marking the steepest decline since June 2024. The weak data added to signs of a sluggish economy, strengthening the case for further rate cuts from the Reserve Bank. Traders are now awaiting a series of key economic data releases this week - including food inflation, consumer confidence, and Q1 GDP—for further insights into the economy’s health.