NZD/USD Holds Above 0.6000 After Mixed China Data and NZ PSI Drop

NZD/USD Holds Above 0.6000 After Mixed China Data and Weak New Zealand Services Index

The NZD/USD pair trades near 0.6020 in Monday's Asian session, showing minimal movement after China's release of mixed economic data and amid growing geopolitical risks in the Middle East.

NZD/USD Steady Despite China’s Mixed Economic Data

China’s Retail Sales jumped 6.4% YoY in May, exceeding expectations of 5.0% and April’s 5.1%. Meanwhile, Industrial Production rose 5.8%, slightly below the 5.9% forecast and the 6.1% reported in April, according to the National Bureau of Statistics (NBS).

Despite the upbeat consumer data, China's NBS warned that trade policy uncertainty and external headwinds could make sustained economic growth more difficult in Q2 2025.

“The domestic economy remained overall stable in H1, but challenges to stable growth are expected to rise in the coming quarters,” noted the NBS press conference.

New Zealand PSI Falls to Multi-Month Low

On the New Zealand side, the Business NZ Performance of Services Index (PSI) dropped sharply to 44.0 in May, down from 48.1 in April — the lowest reading since June 2024. This marked the fourth consecutive monthly decline, signaling weakening service sector activity and potential economic contraction concerns.

Geopolitical Risks Keep Sentiment Subdued

Traders remain cautious amid rising tensions in the Middle East, which have supported safe-haven flows into the US Dollar, further weighing on risk-sensitive currencies like the New Zealand Dollar (NZD).

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