NZD/USD remains under pressure below the 0.5950 area ahead of the RBNZ rate decision

The NZD/USD pair remains on the defensive below the 0.5950 mark during the early Asian session on Wednesday. Meanwhile, the US Dollar attracts some buyers following the US Retail Sales data. The pair currently trades around 0.5948, losing 0.04% for the day. Markets anticipate the Reserve Bank of New Zealand (RBNZ) to maintain 5.5% interest rates.

The US Retail Sales came in above expectations. The headline figure climbed by 0.7% MoM, higher than the 0.4% estimated. Sales excluding the Automobile sector came in at 1%, versus the expected 0.4%. Meanwhile, the NY Empire Manufacturing Index fell to -19 from -1. In response to the data, the Greenback edges higher across the board and trades above 103.20, reaching multi-week highs.

The New Zealand Dollar is losing ground as investors worry about China's deteriorating economic outlook. On Tuesday, Chinese Retail Sales for July came in at 2.5% YoY compared to 4.8% expected and 3.1% previously, while the country's Industrial Production fell to 3.7% YoY compared to 4.5% expected and 4.1% previously. The downbeat Chinese data capped the upside of China-proxy Kiwi.

The focus now shifts to the RBNZ interest rate decision. Markets expect the Reserve Bank of New Zealand (RBNZ) to maintain rates at 5.50%, a 14-year high, for the second consecutive meeting on Wednesday.

Looking ahead, the US Building Permits, Housing Starts, and Industrial Production will be released on Wednesday. However, the FOMC minutes will be the key event this week. The data will be critical for determining a clear movement for the NZD/USD pair.