NZD/USD falls on Chinese activity slowdown

NZD/USD retraces after hitting 0.6370, as investors’ sentiment is positive on the first day of trading in the new year.

Weaker than expected, China’s PMIs would likely hurt the NZD/USD climbing prospects to the 0.6400 area. The New Zealand Dollar also retraces from two-week highs around 0.6370s vs. the US dollar and stumbles to 0.6310s amidst a dull US session, with US financial markets closed on the new year eve.

Hence, the NZD/USD drops 0.42% after hitting a daily high of 0.6345, trading at 0.6318. European equities finished with gains, courtesy of an improvement in market mood. An absent New Zealand and United States (US) economic docket keep most G8 currency pairs within familiar ranges ahead of a pack worldwide economic calendar.

The worst-than-expected, China’s PMIs revealed by the National Bureau of Statistics (NBS) show a gloomy outlook for the second-largest economy in the world. Figures came at 47.0 from 48.0 in November, its most significant drop since the early days of the pandemic.