NZD/USD rebounds slightly from one-week low, still deep in the red around mid-0.5800s

NZD/USD drops to a one-week low following the release of softer Services PMI from China.
US-China trade war fears and a modest USD uptick further contribute to the intraday fall.
Traders look forward to Fed Chair Jerome Powell’s speech for some meaningful impetus.

Haresh Menghani FXStreet

The NZD/USD pair attracts fresh sellers following the previous day's good two-way price move and drops to a one-week low during the Asian session on Wednesday. Spot prices, however, manage to rebound a few pips in the last hour and currently trade around mid-0.5800s, down over 0.50% for the day.

A private survey released earlier today showed that China’s services sector grew less than expected in November, which adds to worries about the fragile recovery in the world's second-largest economy. In fact, China's Caixin Services PMI unexpectedly fell to 51.5 in November from 52.0 in the prior month. This comes on top of new US export curbs on China and concerns about US President-elect Donald Trump's impending tariffs, which, in turn, weigh heavily on antipodean currencies, including the Kiwi.

The US Dollar (USD), on the other hand, continues to draw support from the upbeat US data released on Tuesday, which eased fears of a significant slowdown in the labor market. Adding to this, expectations that Trump's expansionary policies will boost inflation might force the Federal Reserve (Fed) to take a cautious stance on cutting rates. This, along with persistent geopolitical uncertainty continues to underpin the safe-haven Greenback and exerts additional downward pressure on the NZD/USD pair.

The USD bulls, however, seem reluctant to place aggressive bets and opt to move to the sidelines ahead of Fed Chair Jerome Powell's speech later this Wednesday. Apart from this, the release of the closely-watched US Nonfarm Payrolls (NFP) report on Friday should offer fresh cues about the Fed's rate-cut path. This, in turn, will play a key role in influencing the near-term USD price dynamics. Nevertheless, the fundamental backdrop suggests that the path of least resistance for the NZD/USD pair is to the downside.

Economic Indicator

Caixin Services PMI

The Caixin Services Purchasing Managers Index (PMI), released on a monthly basis by Caixin Insight Group and S&P Global, is a leading indicator gauging business activity in China’s services sector. The data is derived from surveys of senior executives at both private-sector and state-owned companies. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Renminbi (CNY). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for CNY.

EUR/USD risks a deeper drop below 1.1750

EUR/USD keeps its vacillating mood in place as the the NA session drwas to a close on Tuesday, hovering below the 1.1800 hurdle amid acceptable gains in the US Dollar. In the meantime, market participants and the FX galaxy are expected to closely follow President Trump’s SOTU speech around 2AM GMT.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Ripple’s DeFi shift in focus: Navigating XRPL EVM sidechain growth, XRPFi migration and liquidity

Ripple (XRP) has continued to trade under pressure, extending its decline by approximately 63% from the record high of $3.66 in July. The remittance token is trading above support at $1.35, while its upside appears limited by key supply zones, starting with $1.40, at the time of writing on Tuesday.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.