The New Zealand Dollar (NZD) remained steady against the US Dollar (USD) during Tuesday’s Asian session, with NZD/USD trading near 0.5980, supported by stronger-than-expected Chinese GDP figures. However, market momentum remains cautious as investors await the highly anticipated US CPI inflation data for June, due later today.
🔹 China’s Q2 GDP Beats Expectations
Data from the National Bureau of Statistics (NBS) showed that China’s economy expanded by 5.2% year-on-year in Q2 2025, outperforming market forecasts of 5.1%. Though slightly lower than Q1’s 5.4%, the report reflected resilient growth despite external pressures.
On a quarterly basis, GDP rose 1.1%, beating the 0.9% consensus, although slightly below the prior 1.2%.
Other key data:
- Retail Sales (June): +4.8% YoY (vs. 5.6% expected, 6.4% prior)
- Industrial Production (June): +6.8% YoY (vs. 5.6% expected, 5.8% prior)
Despite the upbeat figures, the Kiwi failed to rally significantly, as traders turned cautious ahead of the upcoming US inflation print.
🔸 US CPI Data – Key Risk for NZD/USD
Later today, the spotlight will turn to the US Consumer Price Index (CPI) report for June. Markets expect a slight uptick in headline inflation due to rising import costs stemming from new tariffs imposed by President Trump.
- A hotter-than-expected CPI reading could strengthen the US Dollar, as it would reduce the likelihood of near-term Fed rate cuts.
- Conversely, softer inflation may reinforce expectations of policy easing and support NZD/USD upside.
📈 NZD/USD Technical Outlook
As of the Asian session:
- Current price: ~0.5980
- Key support: 0.5950
- Immediate resistance: 0.6000, followed by 0.6050
The pair remains above the 0.5950 support zone, maintaining a short-term bullish tone. A sustained break above 0.6000 could open the door for a retest of 0.6050. However, a strong US CPI print might push the pair back below 0.5950.
🧠 Bottom Line
The NZD/USD pair is holding steady amid mixed sentiment, supported by solid Chinese macro data but restrained by pre-CPI caution. Today’s US inflation report will likely dictate the next decisive move in the pair.
📊 Stay tuned to www.dailyforex.pk for live coverage, expert insights, and full post-CPI analysis on NZD/USD and related forex trends.