NZD/USD attempts pick up from 0.5900 amid the brighter market mood

• The New Zealand Dollar trims some losses as Thursday's sell-off found support right above 0.5900.
• Strong US PPI data cooled hopes of Fed cuts and boosted the US Dollar on Thursday.
• On Friday, downbeat China's Retail Sales and Industrial Production data increased pressure on the NZD.

The New Zealand Dollar is showing a mild recovery on Friday, trimming losses after a nearly 1% sell-off on Thursday, hit by a stronger US Dollar after hot US PPI figures and downbeat industrial production and retail sales data from China.

The pair found support at 0.5900, on its reversal from two-week highs right below the 0.6000 psychological level, and is trading at 0.5925 at the time of writing, yet with technical indicators showing a lack of bullish momentum.

Weak data from China adds pressure on the NZD

Chinese figures released earlier on Thursday revealed that Retail Sales grew at a 3.7% yearly pace in July, missing expectations of a 4.6% reading, following June’s 4.8% increase. Beyond that, Industrial Production undershot, with a 5.7% advance in the previous 12 months, well below the 5.9% consensus and June’s 6.8% growth.

These figures have dampened hopes of a significant recovery of the world's second-largest economy and New Zealand’s largest trading partner, adding selling pressure on the NZD.

Kiwi was already on its back foot, as the sharp increase in US PPI cast a shadow on Fed easing hopes. U.S. producer prices accelerated at their fastest pace in the last three years in July, posing a headache for the Fed, which will have to deal with a context of increasing inflation and a deteriorating labour market. Investors’ risk-averse reaction to the data sent the US Dollar rallying.