NZD/USD crawls above 0.5980 on upbeat Chinese data and a softer US Dollar
- The New Zealand Dollar trims some losses on Tuesday, buoyed by strong Chinese GDP and Industrial Production figures.
- The broader NZD/USD trend remains bearish following a 1% sell-off in the last two days.
- The US Dollar is pulling back from multi-week highs as investors brace for US CPI data.
The New Zealand Dollar bounced up from multi-week lows at 0.5968 duru¡ing Tuesday’s Asian session and trimmed some of the previous losses fuelled by upbeat China’s GDP data returning above 0.5980 at the time of writing.
The broader trend, however, remains bearish after having depreciated about 1% over the last two days and nearly 2% from July 1, with the area around the 0.6000 round level likely to pose a significant resistance for bulls.
Upbeat data from China lifted market sentiment
Earlier on Tuesday, data released by the Chinese Statistics Bureau revealed that the economy grew at a 5.2% pace in the second quarter of the year, below the 5.4% growth seen in the previous quarter but still above the 5.1% reading forecasted by market analysts.
Beyond that, Industrial Production accelerated to a 6.8% yearly growth in June from 5.8% in May, against expectations of a moderate slowdown to 5.6%.
The weaker-than-expected Retail Sales added to evidence of a weak domestic demand, but the overall data was welcomed by the market, which has been seen as a sign of resilience to the US tariffs. Market sentiment improved during the Asian session, lifting risk-sensitive currencies such as the New Zealand Dollar.
On the other hand, the US Dollar is pulling lower, as investors trim US Dollar longs, awaiting the release of the US Consumer Price Index for further clues on the Fed’s monetary policy path.
Economic Indicator
Gross Domestic Product (YoY)
The Gross Domestic Product (GDP), released by the National Bureau of Statistics of China on a monthly 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 YoY reading compares economic activity in the reference quarter compared with the same quarter a year earlier. Generally speaking, a rise in this indicator is bullish for the Renminbi (CNY), while a low reading is seen as bearish.
Read more.Economic Indicator
Industrial Production (YoY)
Industrial output is released by the National Bureau of Statistics of China. It shows the volume of production of Chinese Industries such as factories and manufacturing facilities. A surge in output is regarded as inflationary which would prompt the People’s Bank of China would tighten monetary policy and fiscal policy risk. Generally speaking, if high industrial production growth comes out, this may generate a positive sentiment (or bullish) for the CNY, whereas a low reading is seen as negative (or Bearish) for the CNY.
Read more.Last release: Tue Jul 15, 2025 02:00
Frequency: Monthly
Actual: 6.8%
Consensus: 5.6%
Previous: 5.8%
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
