NZD/USD gains ground to near 0.6080 in Monday’s early European session.
China’s NBS Manufacturing PMI rose to 49.7 in June; Non-Manufacturing PMI climbed to 50.5.
Traders see the US Fed as 92.4% likely to reduce rates by the September meeting.
The NZD/USD pair trades in positive territory for six consecutive days around 0.6080 during the early European session on Monday. Rising bets of Federal Reserve (Fed) interest rate cuts weigh on the US Dollar (USD) against the New Zealand Dollar (NZD). The Fed officials are set to speak later on Monday, including Raphael Bostic and Austan Goolsbee.
Data released by China’s National Bureau of Statistics (NBS) on Monday showed that the country’s Manufacturing Purchasing Managers' Index (PMI) rose to 49.7 in June from 49.5 in May. This figure came in line with the market consensus. Meanwhile, the NBS Non-Manufacturing PMI climbed to 50.5 in June versus 50.3 prior, stronger than the expectation of 50.3. The encouraging Chinese economic data provide some support to the China-proxy Kiwi as China is a major trading partner to New Zealand.
Furthermore, investors interpreted Fed Chair Jerome Powell's testimony to US Congress last week as dovish. This, in turn, continues to undermine the Greenback and acts as a tailwind for NZD/USD. The markets have priced in nearly 92.4% chance of one quarter-point Fed rate reduction, up from 70% a week earlier, according to CME FedWatch tool.
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