NZD Slips as China's PMI Surges, RBNZ Hikes Expected

The New Zealand Dollar (NZD) has lost ground against the US Dollar (USD), trading around 0.5910, despite a minor gain in the previous day.

This comes as China's RatingDog Manufacturing Purchasing Managers' Index (PMI) rose to 51.5 in August from 50.9 in July, exceeding market expectations of 50.9.

The NZD has been closely tied to the Chinese economy due to their close trading relationship, and any change in China's economic activity can impact the NZD.

Strategists at Brown Brothers Harriman expect the Reserve Bank of New Zealand (RBNZ) to hike interest rates for a second consecutive time on Wednesday, citing improved domestic growth outlook and above-target inflation as reasons for this decision.