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New Zealand dollar rises to near 0.5920 as US dollar weakens
The NZD move comes after weaker-than-expected China data, which reinforced expectations that the Fed will be less likely to hike in September.
The New Zealand dollar pushed higher against the US dollar, trading around the 0.5920 area for the first time since early June, as USD weakness supported Kiwi gains.
FXStreet reports that the push continued despite downbeat China data released by the Chinese Bureau of Statistics, which showed industrial production growth slowing to 4.5% year over year to July, below the 5% market expectation, and retail sales rising only 0.6% year over year in July versus expectations of 1.5%.
According to FXStreet, the softer USD tone also reflected shrinking bets on a Federal Reserve rate hike in September, helping NZD benefit as market pricing shifted toward a more dovish outlook. The report notes the China figures add to evidence that growth may remain sluggish in the third quarter, with weather impacts acknowledged by Chinese authorities.