- The NZD/USD lacks an intra -firm intra -direction in the midst of a combination of divergent forces.
- A positive risk tone supports the Kiwi, although a modest rebound of the USD limits to the torque.
- The Mixed PMIs fail to provide significant impulse to cash prices.
The NZD/USD pair struggles to gain significant traction during Wednesday’s Asian session and is near the lower end of a negotiation range of almost two weeks. Cash prices remain stable around the 0.5930 region and move little after the publication of the Chinese PMIs.
The National Statistics Office reported that the Purchase Management Index (PMI) of Official Manufacturing of China contracted 49 in April, compared to 50.5 in the previous month and 49.9 expected. In addition, the NBS non -manufacturing PMI decreased more than expected, to 50.4 in the current month from 50.8 in March. However, the Caixin manufacturing PMI of China fell from 51.2 to 50.4 in April, exceeding the 49.9 market forecast. The data failed to provide significant impulse to antipodes, including Kiwi, in the middle of mixed signals about commercial conversations between the US and China.
However, a positive risk tone – backed by the potential of a decapted commercial tensions between the two largest economies in the world and progress in commercial negotiations – acts as a tail wind for the New Zealand dollar (NZD), considered more risky. That said, a modest fortress of the US dollar (USD) slows operators to open new bullish positions around the NZD/USD torque. Meanwhile, the price action within the range observed during the last two weeks justifies a certain caution before positioning for a firm direction in the short term before the important macroeconomic publications of the US this week.
Wednesday’s economic agenda includes the ADP report on the employment of the private sector, the impression of the GDP of the first quarter and the Personal Consumption Expenditure Price Index (PCE). The attention will then focus on the highly agricultural payroll (NFP) of the US on Friday, which can provide information on the Federal Reserve Policy Perspective (FED). This, in turn, will play a crucial role in the influence of the USD’s pricing dynamics in the short term and will provide significant impulse to the NZD/USD torque.
Economic indicator
PMI Manufacturing NBS
The index of purchase managers (PMI) is published by the China Federation of Logistics and Purchasing (CFLP). Study the conditions in the Chinese manufacturing sector. A reading above 50 means expansion, while below this figure, it implies economic contraction. Since the Chinese economy has influence worldwide, it is likely that this indicator moves the Forex market.
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Last publication:
LIE ABR 30, 2025 01:30
Frequency:
Monthly
Current:
49
Dear:
49.9
Previous:
50.5
The Chinese Logistics and Purchasing Federation (CFLP) publishes the monthly manufacturing PMI on the last day of each month. The official PMI is published before Caixin’s manufacturing PMI, which makes it an even more advanced indicator, highlighting the health of the manufacturing sector, considered as the backbone of the Chinese economy. The data is of great relevance for financial markets in various kinds of assets, given China’s influence on the global economy.
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.
