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NZD/USD slides after China imports miss expectations
NZD/USD fell 0.37% to about 0.5855 as China’s imports rose 28.2% year over year versus a 30% forecast, while US dollar weakness capped the pair’s downside.
FXStreet reports NZD/USD declined 0.37% on Tuesday, trading near 0.5855, as pressure built on the New Zealand dollar after mixed trade data from China.
China’s trade surplus increased to $119.09 billion in August from $112.5 billion in July, with exports rising 25% year over year. Imports also grew 28.2% year over year, up from 27.5% in July, but still below the 30% expansion expected by markets.
FXStreet said the import shortfall pointed to fragile Chinese domestic demand and weighed on NZD, given New Zealand’s close trade ties with China. The move was partly offset by broader weakness in the US dollar.
Looking ahead, the report noted markets are awaiting US PPI and CPI for clues on Federal Reserve policy, with CME FedWatch pricing in a more than 58% chance of a September rate hike. It also flagged ongoing US-Iran tensions, including Tehran’s threat to strike US oil and gas infrastructure, which could keep energy prices elevated and leave New Zealand exposed through its reliance on energy imports.