- NZD/USD intensifies on Chinese inflation and trade data.
- Chinese CPI year-over-year fell by 0.3%. Meanwhile, the monthly figure eased to 0.1%.
- Chinese Trade Balance USD increased to $75.34B in December and the yearly Imports CNY rose by 1.6%.
- US CPI YoY and MoM rose by 3.4% and 0.3%, respectively, in December.
NZD/USD moves higher on an upward trajectory for the second consecutive session on Friday, improving near 0.6250 during the Asian session. The NZD/USD pair receives upward support on improved risk appetite as traders bet on speculation of Federal Reserve’s (Fed) rate cuts in March and May despite upbeat inflation data from the United States (US). Additionally, the moderate Chinese inflation data seems to reinforce the strength of the New Zealand Dollar (NZD), given the close trade ties between the two nations.
In December, the Chinese Consumer Price Index (YoY) showed a decrease of 0.3%, diverging from the anticipated 0.4% decline. The monthly Consumer Price Index displayed a more modest easing at 0.1%, compared to the market expectation of 0.2%. Meanwhile, the yearly Producer Price Index recorded a decline of 2.7%, slightly surpassing the expected decrease of 2.6%.
Additionally, the Chinese Trade Balance USD for December increased to $75.34B from $68.39B prior, exceeding the expected $74.75B. Exports (YoY) figure showed a growth of 2.3% against the 1.7% as expected. Meanwhile, the yearly Imports CNY increased by 1.6% from 0.6% prior. Traders further expect the release of the US Producer Price Index (PPI) data for December, seeking additional insights into the economic landscape of the United States (US).
The US Dollar Index (DXY) treaded water to build on recent gains in the early Asian hours on Friday following the positive US inflation data. However, the DXY trades slightly lower near 102.20, notwithstanding the improved US Treasury yields. The 2-year and 10-year yields on US bond coupons trades at 4.26% and 3.97%, respectively, by the press time.
Furthermore, the upbeat US inflation data helped the US Dollar to achieve some upward traction. US Consumer Price Index (CPI) rose by 3.4% YoY in December, exceeding both November's 3.1% and the anticipated market figure of 3.2%. The monthly CPI growth for December showed a 0.3% increase, exceeding the market projection of 0.2%. The annual Core CPI eased to 3.9% from the previous reading of 4.0%, while the monthly figure remained consistent at 0.3%, in line with expectations.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
![AUD/USD struggles below 0.6400; focus remains on FOMC meeting](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/australian-currency-23690700_Medium.jpg)
AUD/USD struggles below 0.6400; focus remains on FOMC meeting
AUD/USD stays defensive below 0.6400 early Tuesday, lacking bullish conviction. China's economic woes, US-China trade war fears and the RBA's dovish shift continue to act as a headwind for the Aussie. The pair fails to draw support from a weaker US Dollar ahead of Retail Sales data.
![USD/JPY: Volatile within range near 154.00 ahead of US Retail Sales data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/USDJPY/japanese-yen-62890274_Medium.jpg)
USD/JPY: Volatile within range near 154.00 ahead of US Retail Sales data
USD/JPY is moving back and forth in a range at around 154.00 in the Asian session on Tuesday. The pair feels the weight of the Japanese commnetary and a softer risk tone. Howevrer, a renewed US Dollar uptick keeps the dowside checked ahead of the US November Retail Sales report.
![Gold struggle with key $2,650 level extends ahead of US Retail Sales data](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/safe-investment-gm147311616-17537479_Medium.jpg)
Gold struggle with key $2,650 level extends ahead of US Retail Sales data
Gold price holds the previous rebound above $2,650 early Tuesday as buyers remain in control amid sustained weakness in the US Dollar and sluggish US Treasury bond yields. The focus now remains on the US Retail Sales data as the US Federal Reserve begins its two-day monetary policy meeting later on Tuesday.
![Ripple's XRP could rally to $4.75 as RLUSD set to officially launch on Tuesday](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/Ripple_Coin_31_02_Medium.jpg)
Ripple's XRP could rally to $4.75 as RLUSD set to officially launch on Tuesday
Ripple confirmed in a press release on Monday that its RLUSD stablecoin will officially launch on Tuesday across exchanges, including MoonPay, Uphold, CoinMENA, Bitso and ArchaxEx.
![Five fundamentals for the week: Fed dominates the last full and busy trading week of the year](https://editorial.fxstreet.com/images/Macroeconomics/CentralBanks/FED/iStock-1162461465_Medium.jpg)
Five fundamentals for the week: Fed dominates the last full and busy trading week of the year Premium
Christmas is coming – but there's a high likelihood of wild price action before the holiday season begins. Central banks take center stage, and there is enough data to keep traders busy outside these critical decisions.
![Best Forex Brokers with Low Spreads](https://editorial.fxstreet.com/images/IT/BestBrokers_Medium.png)
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.