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NZ dollar holds near 0.5900 as China growth worries weigh
NZD/USD is trading around 0.5903, capped near 0.5907, as slowing China data offsets support from the Reserve Bank of New Zealand and a softer US dollar.
NZD/USD is close to flat, holding the 0.5900 area around 0.5903 and failing to join a broader move lower in the US dollar, according to FXStreet. FXStreet said the US dollar softness reflects reduced expectations for a Federal Reserve move, with August data running cooler and a Reuters poll indicating rates are likely on hold for the rest of the year. The weaker greenback would normally be supportive for the Kiwi, but it has been outweighed by signals of slowing demand from China. Weekend China data showed both industrial production and retail sales slowing and missing forecasts, a weaker read on activity in New Zealand's largest export market. FXStreet noted that for a commodity currency linked to Chinese demand, that drag is enough to keep the Kiwi largely stuck while the Australian dollar leads the majors. FXStreet also pointed to shifting influences tied to Iran and energy prices, noting that renewed escalation risk has pushed oil higher, which can hurt New Zealand as an energy importer while also reinforcing inflation pressures the RBNZ is considering for a potential September hike. On FX positioning, it cited technical levels, including resistance at 0.5907, 0.5911, and 0.5922, and support near 0.5899 before lower moving-average levels at 0.5877 and 0.5855.