<\/p>\n
\n Share:<\/span><\/p>\n The NZD\/USD pair<\/a> stabilized the auction above the round-level resistance of 0.5900 in the late European session. The Kiwi asset aims to extend upside as the market mood improves amid an ease in China\u2019s deflation risks.<\/p>\n The monthly Consumer Price Index<\/a> (CPI) expanded by 0.3% in August as expected by the market participants. The expansion pace remained higher than July\u2019s reading of 0.2%. Annual inflation rose to 0.1% from the prior print of 0.3% contraction while investors projected acceleration to 0.2%. Prices of goods and services at factory gates remained in the deflationary phase at -3.0% as projected by investors but improved from July\u2019s figure of -4.4%.<\/p>\n There is a nominal improvement in inflation data but the overall outlook is still vulnerable as households\u2019 demand is quite slim due to slow job growth. Investors hope a series of economic stimulus support from the administration and the People\u2019s Bank of China to boost growth prospects. Premier Li Qiang said this week that China is expected to achieve its 2023 growth target of around 5%.<\/p>\n Meanwhile, the S&P500 is expected to open on a bullish note, following positive cues from overnight futures. The appeal for risk-perceived assets improved while the US Dollar Index<\/a> (DXY) faced selling pressure. The USD Index finds an intermediate cushion near 104.60 as investors shift focus to the United States inflation data for August, which will be published at 12:30 GMT.<\/p>\n\n