NZD/USD clings to gains above mid-0.5700s after Chinese data; lacks follow-through

NZD/USD kicks off the new week on a positive note amid the emergence of fresh USD selling.
The RBNZ’s hawkish stance offsets the risk-off impulse and also acts as a tailwind for the major.
The mostly upbeat Chinese macro data fails to provide any impetus to antipodean currencies.

Haresh Menghani FXStreet

The NZD/USD pair attracts fresh buyers at the start of a new week and jumps to a four-day high, around the 0.5770 area, during the Asian session amid a broadly weaker US Dollar (USD). Spot prices react little to the Chinese macro data dump and remain confined in a familiar range held over the past week or so.

The National Bureau of Statistics (NBS) reported that China’s economy expanded 1.2% QoQ in the fourth quarter of 2025, coming in above consensus estimates for a 1.0% growth and up from the 1.1% rise recorded in Q3. Meanwhile, China’s annual December Retail Sales increased by 0.9% versus 1.2% expected and 1.3% prior, while Industrial Production came in at 5.2% versus 5.0% estimate and November’s reading of 4.8%. Furthermore, the Fixed Asset Investment fell 3.8% YoY in December vs. a decrease of 3.0% expected and a 2.6% decline in the previous month.

The data, however, fails to provide any meaningful impetus to antipodean currencies, including the Kiwi, amid a fresh wave of the global risk-aversion trade, which tends to undermine the perceived riskier New Zealand Dollar (NZD). The downside for the NZD/USD pair, however, remains cushioned on the back of the Reserve Bank of New Zealand's (RBNZ) hawkish outlook on the future policy path. Apart from this, the emergence of fresh selling around the US Dollar (USD) turns out to be another factor that contributes to the bid tone surrounding the currency pair.

Economic Indicator

Gross Domestic Product (QoQ)

The Gross Domestic Product (GDP), released by the National Bureau of Statistics of China on a quarterly basis, is a measure of the total value of all goods and services produced in China during a given period. The GDP is considered as the main measure of China’s economic activity. The QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a high reading is seen as bullish for the Renminbi (CNY), while a low reading is seen as bearish.

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