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.

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