NZD Fights Back Amid Stronger Chinese Manufacturing Data and Firm USD Expectations

The New Zealand Dollar (NZD) has found some support against the US Dollar (USD), trading around 0.5645 after a bounce from the immediate support level near 0.5625.

This move comes as China's Manufacturing Purchasing Managers' Index (PMI) for September beat expectations, registering 52.1 versus a consensus of 51.6 and an earlier reading of 51.5.

Analysts note that the US Dollar is still expected to remain strong due to expectations of 'almost another 100bps' of rate hikes from the Federal Reserve over the next year.

The US Dollar Index (DXY) has corrected slightly after reaching a two-month high at 101.64, but market participants still anticipate a resilient USD.