The New Zealand Dollar rises 0.37% to 0.5915 as US Dollar weakness outweighs weaker-than-expected Chinese economic data.
NZD/USD advanced 0.37% to 0.5915, reaching its highest level since early June. The move reflects broad-based USD weakness, which overshadowed disappointing Chinese economic indicators released Monday.
China’s Industrial Production grew 4.5% year-over-year in July, missing the 5% forecast and slowing from June’s 5.3% gain. Retail Sales rose just 0.6%, well below the 1.5% estimate, signaling softening domestic demand. Despite New Zealand’s trade ties to China, the Kiwi showed limited reaction to the data.
US economic releases last week fueled expectations of a more dovish Federal Reserve. Easing inflation and a 0.6% drop in July Retail Sales reduced bets on further rate hikes, pressuring the USD.