NZD/USD softens to near 0.6050 ahead of Chinese GDP, Retail Sales data

NZD/USD weakens to around 0.6055 in Friday’s early Asian session. 

The stronger US economic data on Thursday supports the Greenback. 

Investors will monitor the Chinese GDP, Retail Sales and Industrial Production data, which are due on Friday. 

The NZD/USD pair remains on the defensive near 0.6055 during the early Asian session on Friday. The rising expectations for a smaller 25 basis points (bps) Federal Reserve (Fed) rate cut in November and stronger US economic data support the Greenback and weigh on the pair. Investors await the Chinese economic data on Friday, including Gross Domestic Product (GDP), Retail Sales and Industrial Production data for fresh impetus.  

The US September Retail Sales rose more than expected, and August figures were revised higher. Additionally, the weekly Initial Jobless Claims were unexpectedly declined. These encouraging reports have prompted traders to raise their bets that the Fed will cut rates gradually at its next several meetings, lifting the US Dollar (USD) against the Kiwi. 

“Strong data will encourage some pushback from Fed participants to cutting again in November, but Chair Jerome Powell is unlikely to be swayed from forging ahead with steady, quarter-point moves,” said Ellen Zentner at Morgan Stanley Wealth Management.