NZD/USD attract bids near 0.6730 on robust China’s Retail Sales

• NZD/USD has rebounded from 0.6730 on the outperformance of Chinese macros.
• The DXY has tumbled below 99.00 amid a minute expansion in the risk appetite of investors.
• The market participants are waiting for the interest rate decision from the Fed to initiate fresh positions.

The NZD/USD pair has rebounded from 0.6730 as Chinese authorities post robust yearly Retail Sales growth for February. China’s Retail Sales print at 6.7% much higher than the market estimates of 3% and prior figure of 1.7%.

It seems that the antipodean has neglected the effect of sell-off in the Chinese equities, which has been witnessed this week amid rising Covid-19 cases in China. Moreover, galloping cases of the Omicron variant have forced the Chinese administration to lockdown Shenzhen city. Earlier, in response to the rising cases of Covid-19, Toyota announced a halt on manufacturing activities in China’s Changchun city, considering the COVID-19 shutdown measures while Foxconn suspended production at its iPhone site in Shenzhen city.

Apart from China’s Retail Sales data, Industrial Production numbers have also outperformed the prior figures. The yearly Industrial Production has landed at 7.5%, higher than the preliminary estimate and previous print of 3.9% and 4.3% respectively.

Meanwhile, the US dollar index (DXY) is slipped marginally below 99.00 after trading lackluster for the past few ticks. The DXY has attracted some offers amid a minute expansion in the risk appetite of investors. Global equities have rebounded sharply, which is clearly visible from a sharp reversal in the Chinese equities.

Well, a slippage in the DXY may be a temporary one as investors are waiting for the mega event of the Federal Reserve (Fed)’s monetary policy, which is due on Wednesday.