Warsh's Hawkish Comments Curb NZD Gains Despite Strong China Data

The NZD/USD pair is experiencing mild gains near 0.5855 in the early European session on Thursday, supported by stronger-than-expected Chinese economic data.

China's services activity expanded at a faster pace in August, with the Services Purchasing Managers' Index (PMI) rising to 51.4 from 50.4 in July.

The positive report provides support to the China-proxy Kiwi, as China is a major trading partner of New Zealand.

However, Federal Reserve Chair Kevin Warsh's hawkish comments at the Jackson Hole symposium have bolstered expectations of a rate hike in September, increasing the probability to 66.1%.