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  • Upbeat China data fails to elicit a positive reaction from NZD/USD. 
  • Both Industrial Production and Retail Sales bettered estimates. 
  • With China data out of the way, the focus will be on equities. 

NZD/USD is keeping gains near 0.67 following the release of a better-than-expected China macro data. 

Industrial Production rose 5.6% year-on-year versus expectations for a 5.1% rise and up from the preceding month’s 4.8% increase. 

As represented by Retail Sales, China’s consumer spending rose 0.5% year-on-year in August, beating the forecast of 0% and up from July’s -1.1% reading. 

The data is likely to reinforce expectations for a faster recovery in the world’s second-largest economy. As such, it is positive for metals and commodity-linked currencies like the NZD. 

So far, however, the data has failed to bolster the bid tone around NZD/USD. The currency pair is trading near 0.67 – up just five pips since the release of China data. Before that, the pair recovered from 0.6683 to 0.6695 on broad-based dollar weakness. 

The Kiwi may post stronger gains above 0.67 during the day ahead if the upbeat China data propels equities higher, weakening the anti-risk US dollar. 

The People’s Bank of China’s decision to add a net 230 billion yuan into the system could also fuel gains in risk assets and NZD. 

Technical levels