NZD/USD maintains its offered tone near 0.6130-0.6125 area after mixed Chinese macro data – Crypto News – Crypto News
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NZD/USD maintains its offered tone near 0.6130-0.6125 area after mixed Chinese macro data – Crypto News

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1 year ago

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  • NZD/USD remains under some selling pressure for the third straight day on Monday.
  • The mixed Chinese data does little to impress bulls or provide any impetus to the Kiwi.
  • The Fed’s hawkish outlook acts as a tailwind for the USD and exerts downward pressure. 

The NZD/USD pair opens with a modest bearish gap on the first day of a new week, albeit managing to hold its neck above the 0.6100 mark through the Asian session. Spot prices remain depressed near the 0.6130-0.6125 region and move little following the release of mixed Chinese macroeconomic data. 

The National Bureau of Statistics reported this Monday that China’s Retail Sales grew by 3.7% YoY in May as compared to consensus estimates for a reading of 3% and 2.3% in the previous month. The upbeat print, however, was largely offset by a smaller-than-expected increase in Fixed Asset Investment and Industrial Production, which rose by 4.0% and 5.6% yearly rate, respectively. The data fails to provide any meaningful impetus to antipodean currencies, including the New Zealand Dollar (NZD), though a modest US Dollar (USD) strength continues to exert pressure on the NZD/USD pair. 

The USD Index (DXY), which tracks the Greenback against a basket of currencies, stands tall near its highest level since early May touched on Friday in the wake of the Federal Reserve’s (Fed) hawkish forecast of only one rate cut in 2024. The outlook remains supportive of elevated US Treasury bond yields and continues to act as a tailwind for the buck. This, along with persistent geopolitical tensions in the Middle East and political uncertainty in Europe, underpins the safe-haven USD and further contributes to the offered tone surrounding the NZD/USD pair for the third successive day on Monday.

 

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