New Zealand Dollar holds losses below 0.6000 despite upbeat Chinese Manufacturing PMI data
The NZD/USD pair holds losses around 0.5975 during the early Asian session on Monday. The New Zealand Dollar (NZD) remains weak following the Chinese economic data. Traders will keep an eye on the US ISM Manufacturing Purchasing Managers Index (PMI) report later in the day. On Friday, the US Nonfarm Payrolls (NFP) data will be in the spotlight.
Data released by RatingDog on Monday showed that China's RatingDog Manufacturing Purchasing Managers' Index (PMI) fell to 51.8 in May from 52.2 in April. This reading came in better than the market expectations of 51.4. However, this report has no impact on the China-proxy Kiwi.
Traders will closely monitor the Middle East developments. Signs of ongoing tensions between the US and Iran could weigh on the riskier assets, such as the NZD against the USD. Iranian Foreign Minister Abbas Araghchi said that talks and message exchanges with Washington were ongoing, but emphasized that no assessment of negotiations could be made until a clear outcome was reached.
Former Federal Reserve (Fed) Chair Jerome Powell said the US central bank would damage public trust that’s required to support a strong and stable economy if any president were free to dismiss Fed officials over policy disagreements, per Bloomberg.
The US employment data for May will take center stage later on Friday. The US Nonfarm Payrolls (NFP) is expected to see 96K jobs added in May, while the US Unemployment Rate is projected to remain steady at 4.3% during the same period. In case of stronger-than-expected outcomes, this could lift the Greenback and create a headwind for the pair.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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