New Zealnd Dollar weakens after China PMI miss as the US Dollar rebounds
- NZD/USD falls on Friday after weaker-than-expected Chinese business activity data.
- China's PMI contraction weighs on the New Zealand Dollar despite improving consumer confidence at home.
- The US Dollar rebounds as markets continue to assess the Federal Reserve's monetary policy outlook.
NZD/USD trades around 0.5860 on Friday, down 0.33% on the day, as investors react to another deterioration in Chinese business activity. China, New Zealand's largest trading partner, reported that the official NBS Manufacturing Purchasing Managers Index (PMI) fell to 49.2 in July from 50.3 previously, missing the 50 market consensus. The Non-Manufacturing PMI also declined to 49 from 50.2, pointing to a broader slowdown in economic activity.
The weak Chinese data overshadowed more encouraging developments in New Zealand. The ANZ-Roy Morgan Consumer Confidence Index rose by eight points to 99.3 in July, its highest level since February. Expectations for the economy over the next one and five years also improved, suggesting a gradual recovery in household sentiment.
Meanwhile, the US Dollar (USD) regains momentum as investors continue to price in the possibility that the Federal Reserve (Fed) may keep monetary policy restrictive for longer. Markets still see another rate hike as a possibility, supported by persistent inflation concerns. According to the CME FedWatch tool, traders currently assign around a 65% chance to a 25-basis-point interest rate increase at the September meeting.
The latest US economic data also reinforced that view. The final University of Michigan Consumer Sentiment Index was revised higher to 55.2 in July from the preliminary estimate of 54.4, while the Consumer Expectations Index was revised up to 55.4. One-year and five-year Consumer Inflation Expectations remained unchanged at 4.2% and 3.3%, respectively.
New Zealand Dollar Price Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.39% | 0.28% | -0.10% | 0.26% | 0.31% | 0.28% | 0.71% | |
| EUR | -0.39% | -0.11% | -0.49% | -0.13% | -0.09% | -0.14% | 0.32% | |
| GBP | -0.28% | 0.11% | -0.39% | -0.01% | 0.02% | -0.03% | 0.44% | |
| JPY | 0.10% | 0.49% | 0.39% | 0.39% | 0.43% | 0.38% | 0.84% | |
| CAD | -0.26% | 0.13% | 0.01% | -0.39% | 0.04% | 0.00% | 0.46% | |
| AUD | -0.31% | 0.09% | -0.02% | -0.43% | -0.04% | -0.05% | 0.40% | |
| NZD | -0.28% | 0.14% | 0.03% | -0.38% | -0.00% | 0.05% | 0.47% | |
| CHF | -0.71% | -0.32% | -0.44% | -0.84% | -0.46% | -0.40% | -0.47% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
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