NZD/USD holds gains near 0.5850 following Business NZ PMI, mixed China data

• NZD/USD remains stable following the release of mixed economic data from China.
• Business NZ PMI fell to 45.8 in October, down from a revised 47.0 in September.
• The US Dollar remains steady near its fresh 2024 highs, despite signs of slowing in "Trump trades."

The NZD/USD halts its three-day losing streak, trading around 0.5850 during the Asian session on Friday. The New Zealand Dollar (NZD) might have received downward pressure as the Business NZ Performance of Manufacturing Index (PMI) fell to 45.8 in October, down from a revised 47.0 in September, reaching its lowest level since July 2024.

The NZD/USD pair holds gains after mixed key data was released from China. Retail Sales rose 4.8% year-over-year in October, surpassing the expected 3.8% and the 3.2% increase seen in September. Meanwhile, the country's Industrial Production grew by 5.3% YoY, slightly below the forecasted 5.6% but higher than the 5.4% growth recorded in the previous period.

During its press conference on Friday, the National Bureau of Statistics (NBS) shared its economic outlook, noting an improvement in China's consumer expectations in October. The bureau plans to intensify policy adjustments and boost domestic demand, highlighting that recent policies have had a positive impact on the economy.

The US Dollar (USD) remains stable near its fresh 2024 highs, despite indications of slowing in "Trump trades." The US Dollar Index (DXY), which measures the dollar's performance against six major currencies, hovers around 107.00, near its highest level since November 2023.

Market attention is now shifting to the release of US October Retail Sales data on Friday, along with remarks from Federal Reserve officials. On Thursday, Fed Chair Jerome Powell commented that the recent performance of the US economy has been "remarkably good," providing the Fed with the flexibility to gradually lower interest rates.