NZD/USD snaps two-day losing streak near 0.6150 following Chinese data
- NZD/USD holds positive ground near 0.6150 despite the firmer USD.
- China’s GDP growth numbers for Q4 grew at an annual rate of 5.2%, compared to the 4.9% expansion in Q3.
- Fed’s Waller said the central bank can start slowing the pace of quantitative tightening this year.
- The US Retail Sales data will be the highlight on Wednesday.
The NZD/USD pair edges higher during the Asian trading hours on Wednesday. The mixed economic data from China failed to boost the China-proxy Kiwi. Investors will take more cues from US Retail Sales later in the day. At press time, NZD/USD is trading at 0.6150, gaining 0.22% for the day.
The latest data from the National Bureau of Statistics of China showed that the nation’s Industrial Production grew 6.8% YoY in December, compared to expectations and the previous reading of 6.6%. Retail Sales eased to 7.4% in December from 10.1% in the previous reading, below the market consensus of 8.0%.
Additionally, China’s Gross Domestic Product (GDP) for the fourth quarter expanded at an annual rate of 5.2%, compared to the 4.9% expansion in the third quarter, worse than the estimation of 5.3%. On a quarterly basis, the Chinese GDP growth number grew by 1.0% in Q3 versus 1.3% prior, in line with the expectation of 1.0%.
On the USD’s front, the Federal Reserve (Fed) held interest rates steady in December for the third time in a row, keeping the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%. Fed governor Christopher Waller said that the economic activity and the cooling of the labor market made him more confident that the central bank was within striking distance of achieving a sustainable level of 2% PCE inflation. Waller added that he anticipates the Fed can start slowing the pace of quantitative tightening this year.
Investors will shift their focus on the December US Retail Sales. Additionally, the FOMC Barr, Bowman, Woods, and Williams are set to speak later on Wednesday. Traders will take cues from the data and find trading opportunities around the NZD/USD pair.