NZD Weakens as China Trade Data Disappoints

The New Zealand Dollar (NZD) is under pressure after China's trade balance data was released, showing a strong export growth but a slight increase in imports. The NZD/USD pair has been losing value for three consecutive days and is currently trading at around 0.5850.

China's August Trade Balance reached $119.09 billion, which aligns with forecasts and is an improvement from July's figure of $112.5 billion. Exports grew by 25% year-over-year, while imports rose by 28.2%, but fell short of the expected 30% expansion.

The weakness in the US Dollar could provide some cushion for the NZD/USD pair, as traders are pricing in a greater than 60% probability of a Federal Reserve rate hike in September. However, the Greenback may regain its footing soon if inflation data supports a rate increase.