Created
: 2024.10.18
2024.10.18 11:23
The NZD/USD pair extends its sideways consolidative price move through the Asian session on Friday and remains within the striking distance of a nearly two-month low touched earlier this week. Spot prices hold steady around the 0.6065 region and move little following the release of mostly upbeat Chinese macro data.
The official data published by the National Bureau of Statistics (NBS) showed that China's economy expanded 0.9% in the third quarter of 2024, while the annual growth rate stood at 4.6%. A separate report revealed that China's Retail Sales increased by the 3.2% YoY rate in September vs. 2.5% expected, while Industrial Production rose 5.4% YoY vs. 4.6% anticipated and August's 4.5%.
This comes on top of the latest optimism over China's stimulus measures, though fail to provide any meaningful impetus to the New Zealand Dollar (NZD). Expectations that the Reserve Bank of New Zealand (RBNZ) will cut rates aggressively in the wake of a fall in domestic inflation to the central bank's target range of 1% to 3% in the third quarter act as a headwind for the domestic currency.
Apart from this, the recent US Dollar (USD) upswing to its highest level since early August, bolstered by bets for a regular 25 basis points interest rate cut by the Federal Reserve (Fed) in November, contributes to capping the NZD/USD pair. Meanwhile, the lack of any meaningful buying favors bearish traders and suggests that the path of least resistance for spot prices remains to the downside.
The Gross Domestic Product (GDP), released by the National Bureau of Statistics of China on a monthly basis, is a measure of the total value of all goods and services produced in China during a given period. The GDP is considered as the main measure of China's economic activity. The YoY reading compares economic activity in the reference quarter compared with the same quarter a year earlier. Generally speaking, a rise in this indicator is bullish for the Renminbi (CNY), while a low reading is seen as bearish.
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Created
: 2024.10.18
Last updated
: 2024.10.18
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