NZD/USD extends losses on the second successive day, trading lower around 0.5960 during the Asian session on Friday. The Kiwi Dollar (NZD) faces challenges as concerns about the state of China's property sector overshadow the positive impact of Retail Sales and Industrial Production data released on Wednesday. New Zealand, being a major exporter of dairy products to China, is sensitive to developments in the Chinese economy.
China's Fixed Asset Investment (Year-to-Date) revealed a 2.9% rise in October, falling below the forecasted 3.1% and missing expectations for consistency. However, the Chinese government's injection of 1 trillion Yuan in low-cost financing for the property sector is seen as a strategic move to address concerns of a credit crunch. This initiative has the potential to create ripple effects across global economies, including New Zealand, impacting the Kiwi Dollar (NZD).
Despite the significant improvement in New Zealand's Producer Price Index (PPI) – Output for the third quarter, rising to 0.8% from the previous reading of 0.2%, the New Zealand Dollar (NZD) appears to be lacking support.
On the other side, the US Dollar (USD) appears to be moving sideways amid positive jobless claims data. The challenging labor market conditions, with US Continuing Jobless Claims reaching the highest level since 2022 and Initial Jobless Claims rising to the highest level in nearly three months, seem to be ineffective to the USD's resilience.
US Continuing Jobless Claims for the week ending on November 3 increased to 1.865M, compared to the previous reading of 1.833M. Initial Jobless Claims for the week ending on November 10 rose to 231K, exceeding the expected 220K.
Looking ahead, the upcoming US housing data on Friday is expected to provide fresh insights into the housing sector, potentially influencing trading decisions in pairs like NZD/USD.
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