NZD Holds Gains Despite Weaker China PMI Data
The New Zealand Dollar (NZD) held its gains near 0.5890 during Asian trading hours on Monday, despite weaker-than-expected Chinese economic data. The China-proxy Kiwi remained firm, with traders closely monitoring developments surrounding US-Iran peace talks and the release of US ISM Manufacturing PMI data later in the day.
Data from RatingDog showed that China's manufacturing Purchasing Managers' Index (PMI) declined to 50.9 in July, below market consensus of 51.5. However, this had little impact on the Kiwi.
The US-Iran situation remains a key driver for risk sentiment and currency markets. US President Donald Trump announced a new round of Iran talks would begin Monday afternoon, which could improve risk sentiment and lift the NZD against the USD.