Weaker-than-expected Chinese retail sales data weigh on the New Zealand Dollar as China remains its top trading partner.
The NZD/USD pair retreated to around 0.5810 in Asian trading on Tuesday, pressured by disappointing Chinese economic data. China’s retail sales fell 0.6% year-over-year in May, missing forecasts of no change and reversing April’s 0.2% gain.
Industrial production in China rose 4.5% YoY, exceeding expectations, while fixed asset investment declined 4.1% year-to-date, worse than the anticipated 2.0% drop. The mixed data dampened sentiment toward the Kiwi, given New Zealand’s trade ties with China.
Markets now await the US Federal Reserve’s interest rate decision on Wednesday, where policymakers are expected to hold rates steady.