New Zealand rebounds above 0.5850 on stronger Chinese services PMI
The NZD/USD pair recovers some lost ground to near 0.5860, snapping the four-day losing streak during the early Asian session on Thursday. The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) following the upbeat Chinese economic data.
The New Zealand Dollar (NZD) recovered some lost ground against the US Dollar (USD) on Thursday, reaching near 0.5860 following positive Chinese economic data. China's Services Purchasing Managers Index (PMI) rose to 51.4 in August, surpassing the market expectation of 50.6. This data highlighted improvement in China's manufacturing sector, which is a major trading partner for New Zealand.
However, hawkish remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole meeting raised expectations for a potential rate hike in September. The NZD/USD was seen consolidating just above the 100-day simple moving average (SMA) and under the Bollinger Bands middle line, indicating a bearish near-term tone. The rate differential and macroeconomic data releases from New Zealand are key factors influencing the NZD's valuation.
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