- NZD/USD rises to 0.5955 in Friday’s Asian session, up 0.46% on the day.
- China posted better-than-expected Q2 growth, supporting the China-proxy Kiwi.
- US Retail Sales rose by 0.6% MoM in June, beating the estimates.
The NZD/USD pair attracts some buyers to around 0.5955 during the Asian trading hours on Friday. The New Zealand Dollar (NZD) strengthens against the Greenback as China’s second-quarter (Q2) growth beats estimates. The preliminary reading of the University of Michigan Consumer Sentiment will be in the spotlight later on Friday, followed by Building Permits and Housing Starts.
China posted better-than-expected Q2 Gross Domestic Product (GDP) in the face of US President Donald Trump’s tariffs. China’s economy expanded by 5.2% YoY in Q2 versus 5.4% prior, the National Bureau of Statistics showed. This reading came in stronger than the estimation of 5.1%. This encouraging Chinese economic report could underpin the China-proxy China, as China is a major trading partner of New Zealand.
Nonetheless, robust US Retail Sales data could lift the US Dollar (USD) and act as a headwind for the pair. The US Retail Sales rose by 0.6% MoM in June, compared to -0.9% in May. This figure came in below the market consensus of 0.1%. On an annual basis, Retail Sales climbed 3.9% in June versus 3.3% prior.
Traders expect the US Federal Reserve (Fed) will leave its benchmark overnight interest rate unchanged in the 4.25%-4.50% range at its July policy meeting due to the tariff uncertainty triggered by Trump. Financial markets are now pricing in a September starting date for rate cuts, and Fed officials penciled in two easings later this year, according to Reuters.
