- The New Zealand dollar cuts some losses on Tuesday, driven by strong GDP figures and China’s industrial production.
- The broader trend of the NZD/USD remains bassist after a 1% sale in the last two days.
- The US dollar is withdrawing of maximum of several weeks while investors prepare for US CPI data.
The New Zealand dollar bounced from minimums of several weeks at 0.5968 during the Asian session on Tuesday and cut some of the previous losses promoted by the optimistic GDP data of China, returning above 0.5980 at the time of writing this article.
However, the broader trend is still bassist after around 1% in the last two days and almost 2% since July 1, with the area around the round level of 0.6000 probably proposing a significant resistance for the bullies.
China’s optimistic data raised the feeling of the market
Earlier on Tuesday, the data published by the National Office of Statistics of China revealed that the economy grew at a rate of 5.2% in the second quarter of the year, below the growth of 5.4% seen in the previous quarter, but even above the reading of 5.1% predicted by market analysts.
In addition, industrial production accelerated to an annual growth of 6.8% in June from 5.8% in May, against the expectations of a moderate deceleration to 5.6%.
The weakest retail sales added evidence of a weak domestic demand, but the data in general were well received by the market, which has been seen as a sign of resilience to the US tariffs. The feeling of the market improved during the Asian session, raising risk -sensitive coins such as the New Zealand dollar.
On the other hand, the US dollar is falling, since investors cut long positions in US dollar, waiting for the publication of the US consumer price index to obtain more clues on the path of the Fed monetary policy.
Economic indicator
Gross Domestic Product (Yoy)
The gross domestic product published by the Chinese National Statistics Office It is a measure of the total value of goods and services produced by China. GDP is considered a wide measure of economic activity and indicates the growth rate of the economy of a country. Since the Chinese economy influences the world economy, this indicator impacts the currency market. A high reading is positive or bullish for the CNY, while a minor reading is negative or bassist.
Read more.
Last publication:
Mar Jul 15, 2025 02:00
Frequency:
Quarterly
Current:
5.2%
Dear:
5.1%
Previous:
5.4%
Why is it important for operators?
Economic indicator
Industrial Production (Yoy)
This data published by the National Statistics Office of China It measures the production of Chinese factories. An upward trend is considered inflationary, which would boost the Popular Bank of China to contract monetary policy and fiscal risk policy. Generally a favorable reading is positive or bullish for the CNY, while an unfavorable reading is negative or bassist.
Read more.
Last publication:
Mar Jul 15, 2025 02:00
Frequency:
Monthly
Current:
6.8%
Dear:
5.6%
Previous:
5.8%
Fountain:
National Bureau of Statistics of China
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
