The NZD/USD’s probe back into the 80s continued overnight, fuelled by recovering risk appetite and improving sentiment towards the Chinese economy. The NZD/USD is ½ cent higher than yesterday around 0.8070, while the outperformance of the AUD has squeezed NZD/AUD down to 0.8665.
As expected, yesterday’s partial indicators provided further evidence that China’s economy is stabilising. Industrial production, business investment, and retail sales all came in above market expectations in August (industrial production 10.4%y/y vs. 9.9% expected). This fits with our expectation China’s growth will stabilise around 7.5% in the second half of 2013.
Read the full report: FX Daily
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