NZD/USD Slips Below 0.6100 as China's Caixin PMI Rises Above Forecast
By tredu.com • 7/1/2025
Tredu
NZD/USD Falls Below 0.6100 as China’s Caixin PMI Exceeds Expectations
The NZD/USD pair is trading subdued near 0.6090 during the Asian session on Tuesday, after falling over 0.50% in the previous session. Despite a modest uptick in domestic data, the Kiwi remains pressured amid regional developments and broader US Dollar weakness.
New Zealand Data Highlights:
- NZIER Business Confidence: Rose to 22% in Q2, up from 19%
- Building Permits (May): +10.4% MoM, totaling 3,151 units (seasonally adjusted)
The local economic picture showed moderate improvement, but it wasn’t enough to boost the NZD/USD pair significantly.
China’s Manufacturing PMI Lifts Regional Sentiment
The focus quickly shifted to China, where the Caixin Manufacturing PMI climbed to 50.4 in June, up from 48.3 in May, and notably above the market consensus of 49.0.
A reading above 50 indicates expansion — suggesting improving demand from New Zealand’s major trading partner.
Despite this, the Kiwi failed to rally, largely due to US Dollar softness stemming from rising uncertainty over the Federal Reserve’s direction and ongoing fiscal concerns.
Technical View: NZD/USD Faces Key Resistance
The pair’s current level near 0.6090 marks a key psychological and technical zone. A sustained break below 0.6080 could open the door for a test of 0.6045, while a rebound above 0.6125 would be needed to shift momentum back in favor of the bulls.
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