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NZD/USD holds near 0.5890 as China PMI misses expectations
The NZD stays supported despite a softer China Manufacturing PMI, while traders also weigh US-Iran peace talk headlines and upcoming US ISM data.
The NZD/USD pair held positive ground around 0.5890 in Asian trading on Monday, supported by resilience in the New Zealand Dollar even as downbeat Chinese data raised concerns for the China-linked Kiwi.
FXStreet noted that RatingDog showed China’s Manufacturing PMI fell to 50.9 in July from 51.7 in June, coming in below the market consensus of 51.5. The publication said the weaker PMI has little to no impact on the China-proxy Kiwi.
Attention is also on developments around US-Iran peace talks, after US President Donald Trump said a new round of Iran talks would begin Monday afternoon following a canceled planned attack. Iranian officials pushed back, saying Tehran requested no pause and that armed forces were on high alert.
Looking ahead, FXStreet said traders would monitor the US ISM Manufacturing PMI due later on Monday, while Brown Brothers Harriman’s Elias Haddad highlighted that markets have shifted more hawkish, with New Zealand swaps pricing 60 basis points of hikes by year end and 100 basis points of total tightening over the next 12 months to 3.50%. Haddad said this aligns with expectations for a more aggressive RBNZ policy path.