NZD/USD remains stable following the release of mixed economic data from China. Business NZ PMI fell to 45.8 in October, down from a revised 47.0 in September. The US Dollar remains steady near its fresh 2024 highs, despite signs of slowing in Trump trades. The New Zealand Dollar might have received downward pressure as the Business NZ Performance of Manufacturing Index fell to 45.8 in October, down from a revised 47.0 in September, reaching its lowest level since July 2024.
The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.