NZD Weakens Against USD Amid China's PMI Miss and Fed Rate Hike Fears
The New Zealand Dollar weakened against the US Dollar on Friday after China's PMI miss. The official NBS Manufacturing Purchasing Managers Index (PMI) fell to 49.2 in July from 50.3 previously, missing the 50 market consensus.
The Non-Manufacturing PMI also declined to 49 from 50.2, indicating a broader slowdown in economic activity. This weak data overshadowed more encouraging developments in New Zealand, where consumer confidence rose to its highest level since February.
Despite improving household sentiment, the NZD/USD fell by 0.33% on Friday, trading around 0.5860. The US Dollar rebounded as markets continue to assess the Federal Reserve's monetary policy outlook.
The FedWatch tool indicates a 65% chance of a 25-basis-point interest rate increase at the September meeting, supported by persistent inflation concerns.