NZD/USD Holds Near 0.5980 as China’s Q2 GDP Surprises, Focus Shifts to US Inflation

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.

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🔹 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.

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🔸 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.

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📈 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.

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🧠 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.