NZD/USD remains above 0.6000, moves little after China's economic data release

• NZD/USD remains silent amid escalating geopolitical tensions in the Middle East.
• China's Retail Sales advanced 6.4% YoY in May, against the expected 5.0% rise.
• Business NZ PSI fell to 44.0 in May from April's 48.1, marking its lowest level since June 2024.

NZD/USD holds gains following the release of mixed economic data from China, trading around 0.6020 during the Asian hours on Monday. The National Bureau of Statistics (NBS) reported that China's Retail Sales rose 6.4% year-over-year in May, surpassing the 5.0% expected and April's 5.1% increase. Meanwhile, Industrial Production increased 5.8% YoY but below the 5.9% forecast and 6.1% prior.

Moreover, the National Bureau of Statistics (NBS) in China noted in its press conference on Monday that domestic economy is expected to have remained generally stable for the first half (H1) of 2025. However, China may face challenges to maintain stable growth since the second quarter due to factors such as increased uncertainty in trade policies.

In New Zealand, Business NZ Performance of Services Index (PSI) declined to 44.0 in May from April's 48.1. This has marked its lowest level since June 2024 and was the fourth consecutive month of contraction.

However, the upside of the NZD/USD pair could be limited due to risk aversion, driven by the escalating tensions in the Middle East. Israel and Iran continue attacking each other despite international calls for diplomacy and de-escalation, per CNN. Iran fired multiple waves of ballistic missiles toward Israel. The Iranian Revolutionary Guard said their missiles successfully targeted Israeli military-industrial centers and fuel facilities.

Iran informed mediators Qatar and Oman that it will not enter negotiations while under attack. A source denied reports that Tehran had approached Oman and Qatar with a request to engage the United States (US) to broker a ceasefire with Israel.