Despite expectations of further slowdown, China's economy showed signs of growth in the first quarter, with a steady 6.4 percent pace. Meanwhile, industrial production and consumer demand both saw increases in demand as evidenced by improved levels on Monday. The New Zealand dollar fell sharply after data showed that annual inflation had slowed in Q1 and that an interest rate cut was likely to be implemented in coming months. Additionally, the U.S. trade deficit hit an eight-month low in February due to exports to Chinasurging, which helped rebounded in January.