NZD/USD sticks to stronger NZ CPI/China data-inspired gains; remains below mid-0.5700s

NZD/USD attracts some buyers in reaction to hotter inflation figures from New Zealand.
The upbeat Chinese GDP print and other macro releases also offer support to the Kiwi.
The USD bulls remain on the defensive and further contribute to the intraday move up.

Haresh Menghani FXStreet

The NZD/USD pair gains some positive traction at the start of a new week following the release of the latest consumer inflation figures from New Zealand. Spot prices, however, lack follow-through buying and remain below mid-0.5700s through the Asian session.

Data released by Statistics New Zealand showed that the headline Consumer Price Index (CPI) rose 1.0% in Q3 from 0.5% in the previous quarter. Meanwhile, the yearly rate climbed 3.0% during the July-September period versus 2.7% in the second quarter, matching consensus estimates. Apart from this, the upbeat Chinese macro data provides a modest lift to antipodean currencies, including the Kiwi, and acts as a tailwind for the NZD/USD pair amid a modest US Dollar (USD) weakness.

The National Bureau of Statistics reported earlier today that China's economy grew 4.8% in the third quarter of 2025. A separate report showed that China's Industrial Production increased by 6.5% and Retail Sales climbed 3% in September. Moreover, US President Donald Trump's comments on Friday, saying that a full-scale tariff on China would be unsustainable, eased concerns about a further escalation of the US-China trade tensions and lent additional support to the NZD/USD pair.

Meanwhile, the USD struggles to capitalize on Friday's modest gains amid the growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs two more times this year. Apart from this, concerns that a prolonged US government shutdown could affect the economic performance undermine the USD and contribute to the bid tone surrounding the NZD/USD pair. Bullish traders, however, seem reluctant and might opt to wait for the US consumer inflation figures on Friday.

Economic Indicator

Gross Domestic Product (QoQ)

The Gross Domestic Product (GDP), released by the National Bureau of Statistics of China on a quarterly 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 QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a high reading is seen as bullish for the Renminbi (CNY), while a low reading is seen as bearish.

GBP/USD hangs close to 1.3500, awaits fresh impetus from US CPI

GBP/USD keeps its range around 1.3500 in Wednesday's European trading. The pair continues to trade with caution as the US Dollar (USD) holds ground ahead of a crucial US consumer inflation report. Investors are watching this upcoming reading closely, as it is expected to play a major role in shaping the Federal Reserve’s next interest rate decision and the USD valuation.

EUR/USD consolidates below 1.1550 ahead of US CPI

EUR/USD struggles to gain any meaningful traction and holds steady around 1.1550 in the European trading hours on Wednesday, maintaining a familiar range held over the past week or so. Traders keenly await the release of the key US inflation data and further developments surrounding the Middle East crisis before placing fresh directional bets.

Gold retakes $4,400, eyes two-month high as traders look to US CPI for Fed hike cues

Gold attracts fresh buyers during the Asian session on Wednesday and climbs back above the $4,400 mark, closer to its highest level since June 5, which was touched the previous day. Traders now look to the US Consumer Price Index report for more cues about the US Federal Reserve's future policy path amid inflation risks stemming from volatile oil prices.

Crypto Overview: Bitcoin loses $64,000 – LINK, DOGE sustain gains

Bitcoin is trading below $64,000 amid a broader market risk-off sentiment. Emerging as top performers over the last 24 hours, Chainlink and Dogecoin sustain gains, hinting at an extended recovery. CoinMarketCap’s Fear and Greed Index at 38 reflects persistent risk-averse sentiment in the crypto market.

AI defies the disinflationary playbook: Why lower oil prices might not be enough to cool core inflation

The global economic landscape has been fixated on the Middle East since the US-Iran war started in late February, reacting to significant changes in crude Oil prices and assessing how they could influence inflation dynamics and growth outlook.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.