- NZD/USD remains on the defensive below the 0.5900 barrier amid a stronger USD.
- US ISM Services PMI climbed to 54.5 in August vs. 52.7 prior.
- New Zealand’s Manufacturing Sales Q2 improved to 2.9% vs. a 2.1% drop in the previous reading.
- Market players await China’s Trade Balance, US weekly Initial Jobless Claims.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.