NZD/USD holds positive ground above 0.5750 after mixed Chinese data
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NZD/USD gains ground to around 0.5775 in Monday’s Asian session, adding 0.30% on the day. China’s November Industrial Production climbed 5.4%, Retail Sales rose 3.0%. A possible hawkish rate cut by the Fed could underpin the Greenback. The NZD/USD pair attracts some buyers to near 0.5775, snapping the four-day losing streak during the Asian trading hours on Monday. The attention will shift to the preliminary US December Purchasing Managers Index (PMI) for fresh impetus, which is due later on Monday. Data released by the National Bureau of Statistics of China showed on Monday that the nation’s Industrial Production rose 5.4% YoY in November, compared to 5.3% in October. This reading came in stronger than the expectation of 5.3%. Meanwhile, Retail Sales rose 3.0% YoY in November versus 4.8% prior, below the market consensus of 4.6%. The New Zealand Dollar (NZD) remains firm in an immediate reaction to the mixed Chinese economic data. Chinese authorities announced on Thursday that they will unveil a bigger fiscal deficit to boost consumption next year following the Central Economic Work Conference. This follows a commitment made at the huddle of the decision-making Politburo last week to pump more stimulus into the world’s second-largest economy. This, in turn, could underpin the China-proxy Kiwi, as China is a major trading partner to New Zealand. On the USD’s front, a possible hawkish rate cut by the Federal Reserve (Fed) at its December meeting on Wednesday might support the US Dollar (USD) and act as a headwind for the pair. The cautious approach reflects a strengthening US economy, noted by Chair Jerome Powell. Investors see the Fed lowering the interest rates by a quarter of a percentage point at the December meeting, with more attention focused on policymakers’ new economic projections released alongside the decision. Australian Dollar FAQs One of the…
Filed under: News - @ December 16, 2024 2:25 am