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NZ dollar holds above 0.5800 after mixed China growth data

NZD/USD was around 0.5825 in Asian trading, after China’s Q2 GDP growth slowed to 4.3% year on year and Fed rate hike odds for July fell to 16% from 42% earlier in the week.

Reported · Written up by our desk · Major Pairs

The New Zealand dollar stayed supported against the US dollar, with NZD/USD trading in positive territory near 0.5825 during Asian hours on Wednesday, according to FXStreet. The move came after China released mixed economic data, including slower second-quarter GDP growth. China’s economy expanded 4.3% year on year in Q2, down from 5.0% in the prior quarter and below the 4.5% market consensus, marking its weakest growth since 2022. On a quarterly basis, GDP rose 0.9% in Q2 after increasing 1.3% in Q1. Retail sales rose 1.0% year on year in June, while industrial production came in at 5.3% compared with 4.5% in May. FXStreet said the mixed China figures had little to no impact on the China-proxy kiwi, as traders instead focused on the US policy outlook. It noted that bets on a July Fed hike were pared after softer US inflation data, with CME FedWatch odds for a July rate increase dropping to 16% from 42% on Monday. The article added that attention will shift to the US June producer price index report later on Wednesday. It also outlined that the NZD can be influenced by New Zealand’s economic health and Reserve Bank of New Zealand policy, with China data often weighing on the kiwi because China is New Zealand’s biggest trading partner.

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