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NZ dollar slips versus US after China PMI disappoints
NZD/USD was around 0.5870 during Friday’s Asian trading, as China’s July manufacturing PMI fell below consensus to 49.2 and the non-manufacturing PMI to 49.0.
The New Zealand dollar weakened against the US dollar, with NZD/USD trading near 0.5870 during Friday’s Asian session after three days of gains.
FXStreet linked the pullback to softer activity signals from China, where the July manufacturing Purchasing Managers’ Index fell to 49.2 from 50.3, below the 50.0 consensus. The non-manufacturing PMI also dropped to 49.0 from 50.2, again under expectations.
The move also came alongside a broader US dollar bid, with FXStreet noting that the pair remained subdued despite signs of recovery in New Zealand. The ANZ-Roy Morgan Consumer Confidence Index rose 8 points to 99.3 in July, its highest level since February, though it is still 19 points below the January peak.
FXStreet added that strategists at Brown Brothers Harriman said the NZ dollar has been firm “against all major currencies,” even as New Zealand bonds have underperformed peers. Separately, they pointed to a more hawkish Federal Reserve tone, with the FOMC emphasizing a 2% inflation target and warning that inflation cannot be fixed quickly, which typically supports the dollar.