NZD/USD slides further below 0.5900 as the US Dollar picks up from lows
- The New Zealand Dollar drifts lower on Monday, with the US Dollar picking up from lows.
- Upbeat services data from China failed to support the NZD.
- US Services figures and New Zealand’s employment data are in the spotlight today
The New Zealand Dollar has shrugged off the positive services activity data from China released earlier on Tuesday and extends its reversal from Monday’s highs at 0.5930 to levels below 0.5900. The US Dollar is picking up but remains trapped within recent ranges with US Serviceson focus, while, in New Zealand, the highlight will be the Q2 employment raport
Earlier on Tuesday, the Caixinn Purchasing Managers Index for July revealed that ¡ services activity accelerated at its fastest rate in more than one year in July. The index increased to 52.6 from the previous month’s 50.6 reading, beating market expectations of a moderate slowdown to 50.4.
The report pointed to the positive impact from new businesses and the increase in external demand, which had been contracting during the previous two months, as the main reasons for July’s upbeat figures.
Positive data from China fails to support the Kiwi
The figures, however, failed to provide any significant support to the China-proxy New Zealand Dollar. The Kiwi remains on its back for the second consecutive day, as the US Dollar appreciates across the board, with the dust from Friday’s US NFP report settling.
The US Dollar Index, which measures the Greenback against a basket of the most traded currencies, appreciates for the second day in a row, with US Treasury yields picking up from post-NFP lows.
The pair is testing an intra-day support area at 0.5890, with investors awaiting US Services activity data, which is expected to show some improvement, while in New Zealand, the Employment report, due later on the day, might provide some insight into the RBNZ’s policy plans.
Economic Indicator
Caixin Services PMI
The Caixin Services Purchasing Managers Index (PMI), released on a monthly basis by Caixin Insight Group and S&P Global, is a leading indicator gauging business activity in China’s services sector. The data is derived from surveys of senior executives at both private-sector and state-owned companies. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Renminbi (CNY). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for CNY.
Read more.Last release: Tue Aug 05, 2025 01:45
Frequency: Monthly
Actual: 52.6
Consensus: 50.2
Previous: 50.6
Source: IHS Markit
Economic Indicator
Employment Change
The Employment Change, released by Statistics New Zealand, is a measure of the change in the number of employed people in New Zealand. Generally speaking, a rise in this indicator has positive implications for consumer spending and is stimulative of economic growth. A higher reading is seen as bullish for the New Zealand Dollar (NZD), while a lower reading is seen as bearish.
Read more.Next release: Tue Aug 05, 2025 22:45
Frequency: Quarterly
Consensus: -0.1%
Previous: 0.1%
Source: Stats NZ
Statistics New Zealand releases employment data on a quarterly basis. The statistics shed a light on New Zealand’s labor market, including unemployment and employment rates, demand for labor and changes in wages and salaries. These employment indicators tend to have an impact on the country’s inflation and Reserve Bank of New Zealand’s (RBNZ) interest rate decision, eventually affecting the NZD. A better-than-expected print could turn out to be NZD bullish.
Economic Indicator
Unemployment Rate
The Unemployment Rate released by Statistics New Zealand is the percentage of unemployed workers in the total civilian labor force. If the rate goes up, it indicates a lack of expansion within the New Zealand labor market and weakness in the New Zealand economy. Generally, a decrease in the figure is seen as bullish for the New Zealand Dollar (NZD), while an increase is seen as negative bearish.
Read more.Next release: Tue Aug 05, 2025 22:45
Frequency: Quarterly
Consensus: 5.3%
Previous: 5.1%
Source: Stats NZ
Statistics New Zealand releases employment data on a quarterly basis. The statistics shed a light on New Zealand’s labor market, including unemployment and employment rates, demand for labor and changes in wages and salaries. These employment indicators tend to have an impact on the country’s inflation and Reserve Bank of New Zealand’s (RBNZ) interest rate decision, eventually affecting the NZD. A better-than-expected print could turn out to be NZD bullish.
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