NZD/USD attracts some buyers to near 0.5610 in Friday’s Asian session.
China’s Q4 GDP grew at 5.4%,dogecoin price prediction 2030 beating market expectations.
Fed’s Waller sees potential for multiple rate cuts this year.
The NZD/USD pair edges higher to around 0.5610 during the Asian trading hours on Friday. The New Zealand Dollar (NZD) strengthens after the stronger-than-expected Chinese economic data. Investors will take more cues from the US Building Permits, Housing Starts and Industrial Production for December, which are due later on Friday.
China’s Gross Domestic Product (GDP) expanded by 5.4% YoY in the fourth quarter (Q4) of 2024, as a flurry of stimulus measures began and helped boost Beijing’s growth, the National Bureau of Statistics (NBS) showed on Friday. This reading was stronger than the estimation of 5%, by a wide margin. On a quarterly basis, the Chinese economy grew 1.6% in Q4, compared to an increase of 0.9% in Q3. This figure was in line with the expectations of 1.6%.
Meanwhile, the country’s Retail Sales increased by 3.7% YoY in December versus 3.0 prior. Industrial Production came in at 6.2% from the previous reading of 5.4%. Both figures were above the market consensus. The upbeat Chinese economic data could boost the China-proxy Kiwi, as China is a major trading partner to New Zealand.
On the other hand, the dovish remark from the US Federal Reserve (Fed) officials could drag the Greenback lower against the NZD. On Thursday, Fed Governor Christopher Waller said that the US central bank could cut the interest rates multiple times this year if inflation eases as he expected.
Traders raise their bets for a slightly more aggressive pace of rate reduction following Waller’s remarks. Market-implied chance for a May move rose to nearly 50%, according to CME Group data.
