Forex News: NZ Dollar Rises After China Economic Data

NZ Dollar Rises After China Economic Data

(RTTNews) - The New Zealand dollar strengthened against other major currencies in the Asian session on Friday, following the release of the China retail sales and industrial production data in October.

Data from the National Bureau of Statistics showed that industrial production in China was up 4.9 percent on year in October. That was shy of expectations for an increase of 5.5 percent and down from 6.5 percent in September.

The bureau also said that retail sales were up 2.9 percent on year - exceeding expectations for 2.7 percent after riding 3.0 percent in the previous month.

Fixed asset investment fell 1.7 percent on year, missing forecasts for a decline of 0.9 percent following the 0.5 percent drop a month earlier.

The jobless rate came in at 5.1 percent versus expectations for 5.2 percent, which would have been unchanged.

Asian shares traded higher, reflecting uncertainty whether key U.S. economic reports will be released following the end of the longest government shutdown in U.S. history, which could alter the US Fed's decision on interest rates. Markets and the US Fed may continue to be left "flying blind" with regard to the strength of the U.S. economy.

While President Donald Trump has signed a short-term funding bill, White House press secretary Karoline Leavitt told reporters on Wednesday that the October jobs and consumer price inflation reports are "likely never being released" as a result of the shutdown.

Fed officials signaled caution over further easing amid persistent inflation and gaps in official data following the government shutdown.

Potentially due to the concerns about a continued lack of data, CME Group's FedWatch Tool indicates the chances of another quarter point rate cut at the next Fed meeting have slumped to 51.6 percent from 62.9 percent a day ago.

Crude oil prices edged higher as the end of the U.S. government shutdown has renewed confidence in consumption and energy demand. West Texas Intermediate crude for December delivery was up $0.22 or 0.38 percent at $58.71 per barrel.

Later today, traders will take more indications from Federal Reserve (Fed) officials, such as Raphael Bostic and Lorie Logan.

In the Asian trading today, the NZ dollar rose to 10-day highs of 0.5692 against the U.S. dollar and 87.92 against the yen, from yesterday's closing quotes of 0.5654 and 87.39, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.57 against the greenback and 89.00 against the yen.

Against the Australian dollar, the kiwi climbed to a 1-week high of 1.1494 from Thursday's closing value of 1.1547. On the upside, 1.13 is seen as the next resistance level for the kiwi.

The kiwi edged up to 2.056 against the euro, from yesterday's closing value of 2.0575. The next possible upside target for the kiwi is seen around the 2.02 region.

Looking ahead, Eurozone employment data and GDP data for the third quarter are slated for release in the European session.

In the New York session, Canada manufacturing and wholesale sales data for September and U.S. Baker Hughes oil rig count data are set to be announced.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2025 RTTNews.com. All Rights Reserved

Market News provided by RTTNews