NZD Gains Strength as China's Inflation Data Beats Expectations

The New Zealand Dollar (NZD) gained strength against the US Dollar (USD) after China released its inflation data. The NZD/USD pair rose to around 0.5855 during Asian trading hours on Wednesday, following the release of Chinese Consumer Price Index (CPI) and Producer Price Index (PPI) numbers.

The CPI climbed 0.8% year-over-year in August, meeting market expectations, while the PPI increased 3.8% YoY, beating estimates of 3.7%. The data pointed to a resilient Chinese economy, which is New Zealand's largest trading partner.

This has provided some support to the NZD, also known as the Kiwi. Traders are now looking forward to US inflation data releases later this week, including the PPI on Thursday and CPI on Friday.