NZD/USD holds above the 0.5900 area following Chinese GDP data

• NZD/USD posts modest gains around 0.5905 after the upbeat Chinese growth numbers.
• China’s Gross Domestic Product (GDP) for Q3 climbed 1.3% QoQ vs. 0.8% prior, better than expected.
• US Retail Sales for September grew 0.7% MoM, beating the market estimation.

The NZD/USD pair attracts some buyers and holds above the 0.5900 area during the Asian session on Wednesday. The upbeat Chinese economic data lends some support to the Kiwi. The pair currently trades near 0.5905, gaining 0.13% for the day.

The latest data from the National Bureau of Statistics of China on Wednesday revealed that China’s Gross Domestic Product (GDP) for the third quarter (Q3) climbed 1.3% QoQ from a 0.8% expansion in the previous reading, stronger than the expectation of 1%. On an annual basis, the growth number grew to 4.9% versus 6.3% prior, beating the estimation of 4.4%.

Additionally, Chinese Industrial Production and Retail Sales for September rose by 4.5% and 5.5% YoY, respectively. Both figures came in better than the market expectation. In response to the data, the China-proxy Kiwi edges higher against the Greenback.

On Tuesday, New Zealand’s Consumer Price Index (CPI) rose to 1.8% in the three months to September, worse than the market consensus of 2%. The annual comparison posted 5.6%, below the previous 6% and missing the market forecast of 5.9%. Annually, the figure came in at 5.6% from the previous reading of 6% and below the market estimation of 5.9%.

On the USD’s front, Minneapolis Federal Reserve Bank President Neel Kashkari stated that inflation has taken considerably longer than expected and is still too high. Philadelphia Fed President Patrick Harker maintained his dovish stance by mentioning that that in the absence of some turn in the data, the Fed should hold rates steady. That said, the additional dovish comments from the Federal Reserve (Fed) officials might weigh on the US Dollar (USD) and act as a tailwind for the NZD/USD pair.

About the data, the US Census Bureau reported on Tuesday that US Retail Sales for September rose by 0.7% MoM, beating the market consensus of 0.3%. Retail Sales Control Group climbed 0.6% MoM versus 0.2% prior.

Moving on, traders will keep an eye on the US Housing Starts and Building Permits on Wednesday. On Friday, the New Zealand trade data will be released. These figures might give a clear direction to the NZD/USD pair.