The New Zealand Dollar weakens against the USD ahead of key China economic data, despite improved domestic consumer confidence.
NZD/USD fell to around 0.5870 in Asian trading Friday, snapping a three-day rally as investors adopted a cautious stance before China’s Purchasing Managers Index release. The pair’s decline coincided with a stronger US Dollar, offsetting easing risk sentiment tied to US-Iran diplomatic talks.
New Zealand’s ANZ-Roy Morgan Consumer Confidence Index rose 8 points to 99.3 in July, its highest since February but still 19 points below January’s peak. Economic expectations for the year ahead improved to -13%, the strongest since February, while the five-year outlook gained 5 points to +12%.
Strategists noted the NZD’s broader strength against major currencies, even as New Zealand bonds underperformed peers. The ANZ July business outlook survey signaled ongoing GDP recovery, though domestic fixed income lagged.