NZD/USD remains under pressure around 0.5870 ahead of China Trade Data

The NZD/USD pair remains under pressure and reaches the lowest level since November 2022 during the early Asian session on Thursday. The pair currently trades near 0.5872, down 0.01% on the day.

The Institute for Supply Management (ISM) revealed on Wednesday that the US ISM Services PMI climbed to 54.5 in August from 52.7 in the previous month, better than the market expectation of 52.5. This figure marks the highest reading since February. Additionally, the final readings of the S&P Global Composite dropped to 50.2 in August from 50.4 in the previous month.

The Federal Reserve (Fed) Governor Christopher Waller stated that they have further room to increase interest rates, but the data will determine whether the Fed needs to hike rates again and if it is done hiking rates.

On the Kiwi front, the latest data from Statistics New Zealand showed on Thursday that the nation’s Manufacturing Sales for the second quarter improved to 2.9% versus a 2.1% drop in the previous reading. Earlier this week, the ANZ Commodity Price for August dropped to 2.9% from a 2.6% decline in July. The New Zealand Terms of Trade Index improved to 0.4% in the second quarter, compared to a decline of 1.5% in the previous reading and an expected drop of 1.3%.

Apart from this, the disappointing Chinese economic data impact market sentiment and exert pressure on the China-proxy New Zealand Dollar (NZD). Even so, China's services activity expanded at its weakest rate in eight months in August. Tuesday, Caixin reported that the Chinese Services Purchasing Managers' Index (PMI) decreased from 54.1 in July to 51.8 in August.

Looking ahead, China’s Trade Balance will be released later in the Asian session. Also, the US weekly Initial Jobless Claims and Unit Labor Costs for the second quarter will be due on Thursday. These figures could give a clear direction for NZD/USD.