|

New Zealand Dollar weakens after China PMI miss as the US Dollar rebounds

  • NZD/USD falls on Friday after weaker-than-expected Chinese business activity data.
  • China's PMI contraction weighs on the New Zealand Dollar despite improving consumer confidence at home.
  • The US Dollar rebounds as markets continue to assess the Federal Reserve's monetary policy outlook.

NZD/USD trades around 0.5860 on Friday, down 0.33% on the day, as investors react to another deterioration in Chinese business activity. China, New Zealand's largest trading partner, reported that the official NBS Manufacturing Purchasing Managers Index (PMI) fell to 49.2 in July from 50.3 previously, missing the 50 market consensus. The Non-Manufacturing PMI also declined to 49 from 50.2, pointing to a broader slowdown in economic activity.

The weak Chinese data overshadowed more encouraging developments in New Zealand. The ANZ-Roy Morgan Consumer Confidence Index rose by eight points to 99.3 in July, its highest level since February. Expectations for the economy over the next one and five years also improved, suggesting a gradual recovery in household sentiment.

Meanwhile, the US Dollar (USD) regains momentum as investors continue to price in the possibility that the Federal Reserve (Fed) may keep monetary policy restrictive for longer. Markets still see another rate hike as a possibility, supported by persistent inflation concerns. According to the CME FedWatch Tool, traders currently assign around a 65% chance to a 25-basis-point interest rate increase at the September meeting.

The latest US economic data also reinforced that view. The final University of Michigan Consumer Sentiment Index was revised higher to 55.2 in July from the preliminary estimate of 54.4, while the Consumer Expectations Index was revised up to 55.4. One-year and five-year Consumer Inflation Expectations remained unchanged at 4.2% and 3.3%, respectively.

New Zealand Dollar Price Today

The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD0.39%0.28%-0.10%0.26%0.31%0.28%0.71%
EUR-0.39%-0.11%-0.49%-0.13%-0.09%-0.14%0.32%
GBP-0.28%0.11%-0.39%-0.01%0.02%-0.03%0.44%
JPY0.10%0.49%0.39%0.39%0.43%0.38%0.84%
CAD-0.26%0.13%0.01%-0.39%0.04%0.00%0.46%
AUD-0.31%0.09%-0.02%-0.43%-0.04%-0.05%0.40%
NZD-0.28%0.14%0.03%-0.38%-0.00%0.05%0.47%
CHF-0.71%-0.32%-0.44%-0.84%-0.46%-0.40%-0.47%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).

Author

Ghiles Guezout

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

More from Ghiles Guezout
Share:

Editor's Picks

AUD/USD trims some losses, bounces back to 0.7150

AUD/USD has traded on the back foot on Monday, coming close to the 0.7100 mark before rebounding toward the 0.7150 region ahead of the opening bell in Asia. The Greenback’s solid performance has kept the risk complex under pressure, sending the Aussie to fresh monthly lows on the back of rising bets for a Fed rate hike this week. on Tuesday, investors are now expected to closely follow key data releases in China.


USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses. Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.


Gold retests $4,300; USD losses momentum

Gold picks up fresh upside traction and challenges the key $4,300 mark per troy ounce on Monday. The yellow metal, however, remain on the back foot on the back of marked gains in the US Dollar and rising US Treasury yields across the curve.

JasmyCoin: Upbit delisting raises risk of further losses

JasmyCoin shows signs of stability at the time of writing on Monday. However, the token remains constrained between support at $0.0035 and resistance at $0.0040. Since May, its technical structure has continued to deteriorate, with the price falling from highs of $0.0078. JASMY’s outlook suggests that bears have the upper hand as bulls fight to defend key support levels.

Will the Fed deliver the hawkishness markets are pricing in?

Fed hike bets increase after PPI and CPI reports. Updated dot plot to be crucial for the dollar’s reaction. Warsh’s independence faces test amid Trump’s pressure for lower rates. For the Dollar to extend gains, Fed needs to satisfy current hawkish bets.


Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight
The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.