- NZD/USD is better bid on broad-based dollar weakness.
- Caixin’s China Services PMI ticked higher in September.
- The upbeat data may bolster bullish pressures around the NZD.
NZD/USD continues to trade in green at session highs near 0.66 following an upbeat China economic data release.
The Caixin Services PMI rose to 54.8 in September from August’s 54.3/. A reading above 520 indicates expansion.
In other words, the service sector expansion picked up the pace in August.
The data indicates a continued recovery in the world’s second-largest economy from the coronavirus-induced contraction in the first quarter.
As such, commodity dollars like the NZD may extend gains. At press time, the NZD/USD pair is trading near 0.66, having found bids at 0.6572 early Friday.
Renewed expectations for additional US fiscal stimulus and the resulting risk-on action in the global equities have pushed the greenback lower and powering gains in NZD/USD since early Asia.
Analysts at Goldman Sachs believe equity markets face the risk of substantial downside in the runup to the Nov. 3 US Presidential Elections. If stocks do come under pressure, the NZD/USD pair will likely follow suit.
Technical levels
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