The New Zealand Dollar edges lower as US yields outweigh China's beats
The Kiwi has followed US bond yields all month, and better numbers from New Zealand's biggest export market didn't change that on Wednesday. China's official services index came in at 50.2 against a 49.3 forecast, and the private services and factory gauges beat as well.
As US bond yields dominated headlines, the New Zealand dollar (NZD) slipped against the US dollar. China's services index surpassed expectations, but the Kiwi finished lower than it started the day. The Reserve Bank of New Zealand raised its official cash rate to 2.75% on September 2, with market expectations predicting a pause in October and a hike in December.
New Zealand's consumer confidence slipped to 52 from 54, and firms' pricing intentions dropped to 48 from 51. Despite an 80% chance of a hike to 3% on October 28, the OCR remains three-quarters of a point below the Federal Reserve's 3.75-4.00% range. The NZD/USD pair closed under 0.5650 for the second consecutive day, losing more than 4% in September.
The next resistance level is just above 0.5650, while support is found at 0.5600. The NZD is a currency influenced by New Zealand's economic health and the RBNZ's monetary policy, with China's economic performance and dairy prices also influencing its value.
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Also reported by 1 other outlet
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