- NZD/USD strengthens after the release of key economic data from China on Monday.
- China’s Retail Sales grew 4.0% YoY in January-February, improving from December’s 3.7% rise.
- The US Dollar remains under pressure as the Michigan Consumer Sentiment Index declined in March.
NZD/USD continues its upward momentum for the second consecutive day, trading around 0.5760 during Asian hours on Monday. The pair strengthens following the release of China’s economic data, with Retail Sales increasing by 4.0% year-over-year in January-February, up from December’s 3.7% growth.
Additionally, industrial production expanded by 5.9% YoY, surpassing the 5.3% forecast but slightly below the previous 6.2% reading. Positive economic indicators from China tend to support the NZD, given China’s role as a key trading partner for New Zealand.
After the release of China’s high-impact February activity data, the National Bureau of Statistics (NBS) shared its economic outlook during a press conference on Monday. While noting the economy’s resilience, the NBS highlighted increasing external challenges and a more complex global environment.
Furthermore, the New Zealand Dollar (NZD) gained support after China introduced a special action plan over the weekend to stimulate consumption. The initiative includes wage increases, measures to boost household spending, and efforts to stabilize stock and real estate markets, improving overall market sentiment in the region.
On the domestic front, New Zealand’s Business NZ Performance of Services Index (PSI) declined to 49.1 in February from 50.4 in January, indicating a return to contraction in the services sector.
The NZD/USD pair also advanced as the US Dollar (USD) weakened ahead of the upcoming US Retail Sales data release in the North American session. The Greenback faced pressure after the University of Michigan (UoM) reported a drop in its preliminary Consumer Sentiment Index for March on Friday, falling to 57.9—its lowest level since November 2022—from 64.7 previously. This figure also missed the consensus estimate of 63.1.
Economic Indicator
Retail Sales (YoY)
The Retail Sales data, released by the National Bureau of Statistics of China on a monthly basis, measures the value of goods sold by retailers in China. Changes in Retail Sales are widely followed as an indicator of consumer spending. Percent changes reflect the rate of changes in such sales, with the YoY reading comparing sales values in the reference month with the same month a year earlier. Generally, a high reading is seen as bullish for the Renminbi (CNY), while a low reading is seen as bearish.
Read more.Last release: Mon Mar 17, 2025 02:00
Frequency: Monthly
Actual: 4%
Consensus: 4%
Previous: 3.7%
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 faces the next hurdle at 0.6400
AUD/USD rose markedly and approached the key 0.6400 hurdle at the beginning of the week, always in response to rising weakness in the US Dollar and hopes of fresh stimulus in China.
EUR/USD keeps the upside target at 1.1000
EUR/USD extended further Friday’s recovery and traded at shouting distance from the YTD peaks near 1.0950 in response to increased selling pressure in the Greenback and the improved political scenario in Germany.
Gold consolidates around $3,000 ahead of Fed
Gold prices has started the week on a positive tone and maintains their trade around the key $3,000 mark per troy ounce on the back of the modest pullback in the Greenback and mixed US yields across the curve,
Crypto markets could gain $1 trillion as Gold price reaches $3,000: Tokenized-Gold expert explains
Tokenized-Gold assets hit a $1.8 billion market cap on Monday after the Gold (XAU) price marked new all-time highs above $3,000 per troy ounce. In an exclusive interview with FXStreet, RAAC CEO Kevin Rusher explains how tokenized Gold assets could impact the next crypto market recovery phase.
Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme Premium
Central bank bonanza – perhaps its is not as exciting as comments from the White House, but central banks still have sway. They have a chance to share insights about the impact of tariffs, especially when they come from the world's most powerful central bank, the Fed.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.