The post NZD/USD recovers above 0.5900 as upbeat Chinese PMI data boost Kiwi appeared on BitcoinEthereumNews.com.

NZD/USD trades on a stronger note around 0.5915 in Wednesday’s Asian session, up 0.17% on the day. China’s NBS Manufacturing PMI for July came in better than expected; Non-Manufacturing PMI was in line with the consensus.  US Fed is widely expected to hold rate in the range of 5.25%-5.50% at its July meeting on Wednesday.  The NZD/USD pair extends recovery near 0.5915 Asian trading hours on Wednesday. The pair edges higher after the stronger-than-expected Chinese Manufacturing Purchasing Managers’ Index (PMI) data for July. Investors will shift their attention to the Federal Reserve’s (Fed) interest rate decision, which is scheduled for Wednesday. Data released by the National Bureau of Statistics (NBS) on Wednesday showed that the country’s Manufacturing PMI declined to 49.4 in July from 49.5 in June, beating the expectations of 49.3. Meanwhile, the NBS Non-Manufacturing PMI dropped to 50.2 in July versus 50.5 prior, which is in line with the market consensus of 50.2. The better-than-expected Chinese PMI readings provide some support to the New Zealand Dollar (NZD) as China is a major trading partner of New Zealand. However, the growing speculation for an early interest rate cut by the Reserve Bank of New Zealand (RBNZ) might cap the pair’s upside in the near term. Investors expect the RBNZ rate cuts, with traders pricing 14 basis points (bps) of cuts in August, indicating a 55% chance of a rate cut soon.  On the USD’s front, the Fed will announce its interest rate decision later in the day, with no change in rate expected. Traders will closely watch Fed Chair Jerome Powell’s remarks from the press conference as Fed officials might set the stage for an easing policy at its September meeting. Any dovish comments from Fed’s Powell might exert some selling pressure on the Greenback and create a tailwind for NZD/USD.…

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Filed under: News - @ July 31, 2024 4:24 am