NZD/USD consolidates below 0.7250 amid firmer US dollar, mixed Chinese data
|- NZD/USD is trading decisively below the session’s high in the Asian session.
- USD gains strength on geopolitical and market risk concerns.
- Mixed Chinese economic data also weigh on the pair.
The NZD/USD pair maintains a subdued tone and trades on a lower note in the Asian session. Having opened higher, the pair failed to hold onto the positive trajectory and touched the intraday low at 0.7215.
At the time of writing, the NZD/USD pair is trading at 0.7223, down 0.39% on the day.
The mixed Chinese economic data took a toll on the Kiwi, being China's biggest trading partner. The slowdown in the Chinese economy indirectly affects the NZD sentiment. China’s Retail Sales rose to 17.1% in April YoY below the previous 34.2% jump and much below the market expectations of 24.9% growth. Industrial Production jumped to 9.8% matching the market expectations. The mixed data weighed on the sentiments surrounding the Kiwi and pushed the pair lower.
Meanwhile, on the domestic front, the Business NZ performance of Service Index rose to 61.2 in April as compared to 52.9 in the previous month. Overseas visitor arrivals in New Zealand fell 97.4% YoY.
On the other hand, the US dollar index rose modestly and stands around 90.38 with 0.03% gains. The downbeat US Retail Sales data released on Friday failed to encourage the market, while the University of Michigan’s Consumer Sentiment fell below forecasts due to rising inflation. Against this backdrop, the escalating tension in the Middle East aided the attractiveness of the greenback on its safe haven appeal.
In the latest development, US Secretary of State Antony Blinken discussed the concerns in Israel, the West Bank, and GAZA with Qatari, Egyptian, and Saudi foreign ministers on Sunday, as per Reuters.
As for now the dynamics around the US dollar continues to influence the pair’s performance for the time being.
NZD/USD Additional Levels
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